Jane Street Hit with Terra $40B Insider Trading Suit
5 hours ago
- #insider-trading
- #legal-battle
- #crypto-collapse
- Jane Street Group LLC is being sued for allegedly using stolen information to profit from the Terra-Luna collapse while retail investors suffered losses.
- The lawsuit claims Jane Street withdrew 85 million TerraUSD within 10 minutes of Terraform Labs' withdrawal, triggering a market panic.
- A former Terraform intern, Bryce Pratt, is accused of creating a back-channel for material non-public information to Jane Street.
- Jane Street denies the allegations, calling the lawsuit baseless and blaming Terraform's management for the fraud.
- Jump Trading is also involved in a separate lawsuit for allegedly exploiting the Terraform ecosystem and sharing confidential information with Jane Street.
- Legal experts highlight the complexity of insider trading claims in crypto due to unclear definitions of securities and material non-public information.
- Jane Street reportedly issued an urgent memo to cease manipulative Bitcoin trading activity, though this is unconfirmed.