Jane Street faces claims of insider trading that sped up Terraform's collapse
5 hours ago
- #insider trading
- #crypto collapse
- #Jane Street
- Jane Street is accused of insider trading that accelerated Terraform Labs' collapse in 2022.
- A lawsuit claims Jane Street used insider info to front-run trades, withdrawing 85 million TerraUSD after Terraform secretly pulled 150 million UST.
- This allegedly triggered TerraUSD's depegging, causing a $40 billion market wipeout.
- Jane Street denies the allegations, calling them 'baseless' and 'desperate' attempts to extract money.
- Terraform Labs, founded by Do Kwon, filed for bankruptcy in 2024 after its stablecoin and Luna token crashed in 2022.
- Do Kwon was sentenced to 15 years in prison for related criminal charges.
- The lawsuit highlights a group chat where Jane Street's employee discussed buying bitcoin or Luna with Kwon.
- Jane Street vows to defend against the lawsuit, blaming Terraform's management for the collapse.