Overview
- The court‑appointed administrator for Terraform Labs filed an amended federal complaint in May 2026 accusing Jane Street and three employees of using non‑public information to trade ahead of Terra’s collapse.
- The complaint says Jane Street sold roughly $192–193 million of UST and then shorted Terra tokens, generating about $134 million in profits from trades tied to the May 2022 depeg.
- Plaintiffs allege the information flowed through a private Telegram group nicknamed “Bryce’s Secret,” which included a former Terraform intern who later joined Jane Street.
- Jane Street denies wrongdoing and has moved to dismiss the case with prejudice, arguing its trades followed public on‑chain signals and invoking the Wagoner rule to block the estate’s claims.
- If the court allows discovery, the case could require production of private chats and wallet records and set legal precedent on how insider‑trading rules apply to crypto communications and market makers.