The bankrupt estate of Terraform Labs has filed a lawsuit against trading giant Jane Street, alleging insider trading tied to the collapse of TerraUSD and $LUNA in 2022.
The complaint claims Jane Street used non-public information to withdraw large liquidity from Curve pools just before the UST depeg, accelerating the crash that wiped out billions from the Terra ecosystem.
Jane Street denies wrongdoing and says Terra’s own design flaws caused the collapse.
⚖️ If proven, this case could become one of the biggest insider-trading battles in crypto history.