Overview
- Terraform Labs’ court-appointed administrator filed a federal lawsuit in Manhattan accusing Jane Street, co-founder Robert Granieri, and traders Bryce Pratt and Michael Huang of insider trading during Terra’s 2022 collapse.
- The complaint alleges the firm received non-public tips from Terraform insiders and coordinated UST trades in a private Telegram chat.
- Investigators point to an 85 million UST sale on May 7, 2022 that allegedly followed confidential instructions to withdraw liquidity from a key trading pool.
- The administrator seeks to claw back roughly $134 million in profits and additional damages, citing the broader $40 billion wipeout of the Terra ecosystem.
- Jane Street denies wrongdoing, asks the court to dismiss the case with prejudice, and argues the supposed inside information was already visible on-chain before its largest sale, a dispute that could shape future clawbacks and liability in crypto trading.