New Court Filing Accuses Jane Street of Insider Trading Before Terra Collapse

Highlights:

• The amended complaint claims Jane Street used insider Telegram chats before the Terra collapse.
• The court filings linked a previously anonymous Curve wallet to Jane Street during the UST depeg.
• Jane Street could face discovery demands for trading records and internal communications.

Terraform Labs’ bankruptcy estate filed an amended complaint in Manhattan federal court against Jane Street last week. Court-appointed administrator Todd Snyder accused the trading firm of using insider information before the Terra collapse in May 2022.

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Jane Street Accused Of Dumping UST Before Terra Collapse

Terraform Labs’ estate has accused Jane Street of using insider information from a private Telegram group before the Terra collapse.

Court filings allege the trading firm dumped roughly $192 million in UST before the… pic.twitter.com/qzXYM4ysow

— BSCN (@BSCNews) May 21, 2026

The amended filing included internal Telegram conversations, trading details, and messages tied to Terraform employees. Snyder alleged that Jane Street employees received confidential company information through a private Telegram group called “Bryce’s Secret.”

Bryce Pratt created the Telegram group after he joined Jane Street from Terraform Labs in September 2021. Snyder alleges that Terraform team members disclosed sensitive data regarding the liquidity situation, investment plans, and market strategy prior to the UST de-peg. The complaint said that Jane Street relied on insider information, rather than public market data and quantitative analysis.

The amended complaint also included internal messages linked to the Telegram conversations. Snyder claimed Pratt told colleagues they should feel “slightly pleased” about their “informational advantage.” The estate argued that the message showed Jane Street employees understood they possessed confidential Terraform information before the Terra collapse. The lawsuit also named Jane Street co-founder Robert Granieri and employee Michael Huang in the alleged scheme.

Terraform’s estate asked the Manhattan federal court to recover profits, damages, and financial remedies from Jane Street. Snyder also added federal securities law claims and Commodity Exchange Act allegations in the amended complaint. The filing cited an earlier federal ruling that classified UST and Luna as securities.

Terra Collapse Triggers New Questions Over Curve Pool Activity

The amended complaint detailed trading activity from May 7, 2022, that allegedly triggered the UST depeg and accelerated the Terra collapse. Court filings stated that Terraform Labs removed 150 million UST from Curve’s 3pool at 5:44 PM Eastern Time. Less than nine minutes later, a wallet linked to Jane Street removed another 85 million UST from the same liquidity pool. Snyder argued that the 85 million UST withdrawal became the largest individual transaction connected to the depeg sequence.

The estate claimed Jane Street sold nearly 192 million UST near its dollar peg before the stablecoin collapsed in May 2022. Snyder also alleged that Jane Street built short positions against Terra-related assets as panic spread across the ecosystem. The complaint alleged that Jane Street earned nearly $134 million by shorting Terra-related assets during the collapse. Snyder argued that the firm used insider information to exit UST near par value while retail investors suffered major losses.

Terraform Labs looks for scapegoats in its collapse.

The administrator overseeing the liquidation of Terraform Labs has filed a lawsuit against trading firm Jane Street.

He accused the firm of insider trading that accelerated the collapse of Do Kwon’s Terra-Luna empire.… pic.twitter.com/hKLSb34bpr

— TU_Crypto_News (@TU_Crypto_News) February 24, 2026

The Terra collapse erased nearly $40 billion from the crypto market during May 2022. The crisis triggered insolvencies at Three Arrows Capital, Voyager Digital, Celsius Network, and FTX during 2022.

Discovery Fight Could Expose Jane Street Trading Records and Telegram Messages

The amended complaint stated that Jane Street employees reacted after blockchain analysts linked wallets to Terra collapse trades. Snyder claimed that a crypto analytics firm contacted a Jane Street associate after the market crash and referenced the profitable trades.

Court filings showed Jane Street traders discussing how to “decommission” wallets linked to UST transactions after on-chain identification. Snyder argued that the discussions showed concern about investigators tracing blockchain activity tied to the Terra collapse.

Jane Street denied insider trading, fraud, and market manipulation allegations in its April 23 motion to dismiss. The firm argued that Terraform founder Do Kwon caused the collapse through fraud and mismanagement.

Jane Street also argued that the Wagoner Rule blocked Terraform’s estate from suing third parties over losses caused by company leadership. The court could require Jane Street to produce internal communications, trading records, and Telegram messages if the lawsuit enters discovery.

Jane Street filed a motion to dismiss an insider trading lawsuit alleging it used nonpublic information to profit before Terraform’s $40 billion crypto collapse. pic.twitter.com/icVMG7xhsS

— CEX News (@cex_news) April 23, 2026

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