| What to Know: - Terraform alleges Jane Street used insider information during the 2022 UST depeg. - Lawsuit claims Jane Street exploited undisclosed liquidity shifts as UST unraveled. - Administrator seeks accountability for trading advantages from nonpublic Terraform protocol knowledge. |
The court-appointed administrator of Terraform Labs alleges that Jane Street used nonpublic information from Terraform insiders to trade during the 2022 TerraUSD (UST) depeg, as reported by The Wall Street Journal. The accusation situates Jane Street at the heart of crisis-period activity around UST and LUNA.
The lawsuit alleges the firm positioned itself around undisclosed liquidity shifts as UST unraveled in 2022, according to Decrypt. The core claim is that Jane Street benefited from privileged access unavailable to the broader market.
The administrator leading Terraform Labs through bankruptcy has sued Jane Street on these grounds, alleging insider trading linked to the collapse, as per Cointelegraph. The complaint seeks accountability for trading advantages allegedly derived from nonpublic protocol knowledge.
According to CryptoBriefing, the complaint accuses Jane Street of using insider information to execute trades ahead of the market. It describes trading aligned with timing and content of confidential communications from Terraform insiders during the unwind.
As reported by Blockworks, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York previously granted summary judgment to the SEC that LUNA and MIR were securities. That backdrop may shape judicial views on nonpublic information and manipulation theories applied to crypto assets.
The administrator has framed the suit as an effort to hold market actors accountable for exploiting privileged access during a crisis. “Jane Street abused market relationships to rig the market in its favor during one of the most consequential events in crypto history,” said Todd Snyder, the court-appointed administrator of Terraform Labs.
For its part, the defendant rejects the narrative and ties the damage to Terraform’s own misconduct rather than counterparties’ trades. “These are baseless, opportunistic claims… we will defend ourselves vigorously,” said a Jane Street spokesperson.
At the time of this writing, Terra (LUNA) trades near $0.05987, with volatility around 8.72% and RSI 14 at 40.97 (Neutral). The 50-day SMA of 0.07504 remains below the 200-day SMA of 0.1129, and sentiment indicators are Bearish. These contextual figures do not imply causation or legal conclusions.
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