Terraform Estate Sues Jane Street Over Alleged Exploitation During 2022 Crypto Collapse
Terraform Labs' bankruptcy estate has filed a lawsuit against Jane Street, accusing the quantitative trading firm of profiting from non-public information during the TerraUSD (UST) collapse in May 2022. The complaint, filed in New York Southern District Court, alleges Jane Street "abused market relationships" to short the Terra ecosystem as it spiraled toward a $40 billion wipeout.
Court-appointed administrator Todd Snyder claims Jane Street exploited private liquidity data to front-run a critical $150 million withdrawal from Curve Finance. The suit mirrors similar allegations made against Jump Trading last year and seeks to recover funds for creditors devastated by the stablecoin's depegging event.
Jane Street dismissed the action as a baseless money grab, maintaining its trades reflected legitimate market activity. The case highlights ongoing legal fallout from one of crypto's most spectacular failures, with plaintiffs targeting firms that allegedly turned systemic weakness into profit.
