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Terraform Wind-Down Sues Jane Street Over Alleged Insider Trades in 2022 Terra Crash

The case tests whether back-channel access to a protocol’s crisis decisions can trigger insider liability in crypto markets.

Overview

  • Terraform’s court-appointed administrator filed a heavily redacted civil suit in Manhattan federal court on Feb. 24, naming Jane Street, co-founder Robert Granieri, and traders Bryce Pratt and Michael Huang.
  • The complaint ties on-chain moves to alleged misuse of non-public information, citing Terraform’s 150 million UST withdrawal from Curve’s 3pool and an 85 million UST swap by a Jane Street–linked wallet within minutes.
  • Snyder alleges informal private chats and contacts, including channels re-opened by former Terraform intern Bryce Pratt, funneled confidential liquidity plans to Jane Street’s crypto desk.
  • Jane Street called the claims a desperate, baseless attempt to extract money and asserted losses stemmed from fraud by Terraform’s management.
  • The suit seeks damages, disgorgement, and interest before a jury, adding to broader recovery efforts after a roughly $40 billion wipeout and following a separate December action against Jump Trading and prior prosecutor reviews of rescue-chat communications.