Jane Street denies the allegations made by Terraform's clearinghouse, stating they are baseless.

CycleProphet · 2026-02-25T05:16:37+00:00

Terraform Labs bankruptcy trustee files a lawsuit against high-frequency trading firm Jane Street, accusing it of using insider information to accelerate the collapse of TerraUSD and LUNA, resulting in a $40 billion market wipeout. Jane Street denies the allegations, claiming they are unfounded.

CycleProphet

2026-02-25 05:16:37

Abstract generation in progress

Deep Tide TechFlow News, February 25 — According to Coindesk, Terraform Labs’ bankruptcy trustee Todd Snyder has filed a lawsuit against high-frequency trading firm Jane Street, accusing it of using insider information to front-run trades, which accelerated the collapse of TerraUSD and LUNA in 2022. The lawsuit states that within 10 minutes of Terraform quietly withdrawing 150 million TerraUSD from Curve3pool, a wallet associated with Jane Street also withdrew 85 million TerraUSD from the same liquidity pool. This action triggered the de-pegging of the stablecoin and ultimately led to a market evaporation of $40 billion. Jane Street has denied these allegations, calling them “baseless.”

Terraform Labs filed for bankruptcy in January 2024, and its founder Do Kwon has been sentenced to 15 years in prison after pleading guilty.

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