In brief
- The Terraform wind-down trust accuses Jane Street of trading on non-public information.
- The complaint centers on liquidity withdrawals during thes May 2022 depeg that led to TerraUSD and FTX’s collapse.
- The case could test insider liability in crypto markets, Decrypt was told.
The Terraform Labs bankruptcy administrator has sued Jane Street, alleging the quantitative trading firm used non-public information to profit at the height of the crypto market’s collapse in 2022.
The lawsuit centers on allegations that Jane Street obtained advance insight into Terraform’s internal liquidity decisions and positioned trades around those moves as TerraUSD began to lose its dollar peg, according to a report from The Wall Street Journal…
