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Terraform Estate Sues Jane Street Over Alleged Insider Trades in 2022 Terra Collapse

The case could test whether private back-channels qualify as insider access in decentralized finance.

Overview

  • Court-appointed administrator Todd Snyder filed the complaint in Manhattan federal court seeking damages, disgorgement and a jury trial against Jane Street and individuals Robert Granieri, Bryce Pratt and Michael Huang.
  • The suit alleges a Jane Street–linked wallet sold about 85 million UST on Curve’s 3pool within ten minutes of Terraform’s undisclosed 150 million UST withdrawal on May 7, 2022.
  • Administrators claim the firm traded on material non-public information obtained through informal communications, highlighting Pratt’s prior internship at Terraform and renewed contacts with staff.
  • The heavily redacted filing cites wallet attribution and timestamp evidence to connect the disputed trades to Jane Street.
  • Jane Street calls the allegations baseless and attributes investor losses to Terraform’s management, as the estate pursues parallel recovery efforts including a separate multibillion-dollar suit against Jump Trading after a roughly $40 billion wipeout.