Terraform Accuses Jane Street of Insider Trading

On Monday, Todd Snyder, Terraform’s court-appointed administrator, sued Jane Street, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang in a Manhattan federal court, accusing them of misappropriating confidential information and manipulating market prices.

The heavily redacted complaint says Jane Street used connections with "Terraform insiders to learn material non-public information" and used that information to sell tokens tied to the Terra blockchain in ways that worsened its collapse. Jane Street said it will defend itself against what it called "baseless, opportunistic claims." The firm added: "This desperate suit is a transparent attempt to extract money when it is well-established that the losses suffered by Terra and Luna holders were the result of a multi-billion dollar fraud perpetrated by the management of Terraform Labs." The lawsuit claims Jane Street sold at "precisely the right time," disposing of "hundreds of millions of dollars in potential exposure" mere hours before the ecosystem failed.

United States, Manhattan

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