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Terraform Estate Sues Jane Street Over Alleged Insider Trading in Terra’s 2022 Collapse

The filing tests whether private back channels in DeFi can create insider liability under the misappropriation theory.

Overview

  • Court-appointed administrator Todd Snyder filed the complaint in Manhattan federal court on Feb. 24, seeking damages, disgorgement and a jury trial on behalf of Terraform creditors.
  • The suit alleges Jane Street used material nonpublic information from Terraform insiders to trade ahead of market-moving liquidity actions during the UST depeg.
  • Defendants include Jane Street co-founder Robert Granieri and employees Bryce Pratt and Michael Huang, with the complaint highlighting Pratt’s prior internship at Terraform and alleged private chat access.
  • As evidentiary timing, the filing cites May 7, 2022 on-chain activity in Curve’s 3pool, alleging a Jane Street–linked wallet moved roughly 85 million UST within about 10 minutes of Terraform’s unannounced 150 million UST withdrawal.
  • Jane Street denies the claims as baseless and attributes investor losses to misconduct by Terraform’s management, while the case joins prior recovery actions, including litigation targeting Jump Trading, after a collapse that erased roughly $40 billion.