Terraform Labs’ administrator has filed a lawsuit against Jane Street, accusing the firm of insider trading tied to Terraform’s collapse.

The suit claims that on May 7, 2022, Terraform withdrew 150 million TerraUSD from a liquidity pool, and within ten minutes Jane Street reportedly dumped 85 million TerraUSD into the same pool, sparking the alleged trading activity.

The complaint alleges Jane Street’s trading intensified in 2022 after former Terraform intern Bryce Pratt reconnected with Terraform staff through a back-channel used to obtain confidential information.

The excerpt provides no additional verifiable details beyond the headline about timing, claims, or legal basis.

Commentary suggests the case could broaden misappropriation theory in crypto markets, potentially expanding who qualifies as an insider beyond traditional corporate ties.

The article places the case in the broader context of Terraform’s downfall, noting ongoing disputes and settlements without delivering a final judicial resolution.

Snyder alleges Jane Street used market relationships to rig the market during a high-profile crypto event and intends to pursue all avenues against those who profited from the collapse.

Analysts say the case will hinge on materiality and the source of information and may redefine insider status to include private chats or back-channel communications during a protocol crisis.

This action follows a separate December lawsuit against Jump Trading for allegedly profiting from Terraform’s collapse.

Jane Street has publicly denied the allegations, calling the suit opportunistic and vowing to defend against the claims, asserting losses stemmed from a multibillion-dollar fraud by Terraform management.

Jane Street reiterates denials, describing the claims as baseless and pledging vigorous defense.

Jane Street contends Terra-Luna’s collapse resulted from Terraform management’s multibillion-dollar fraud and intends to vigorously defend the case.