Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Terraform accused Jane Street of involvement in the collapse of the Terra ecosystem., 2026/02/24 12:21:04
The bankruptcy trustee of the failed crypto platform Terraform, Todd Snyder, has filed a lawsuit in federal court in Manhattan against the trading firm Jane Street, alleging that it utilized confidential information in transactions involving Terra tokens.
The lawsuit claims that Jane Street gained access to non-public data through a former Terraform intern, Bryce Pratt, who maintained connections with ex-colleagues, including the company’s business development head. According to the plaintiff, Pratt established a group chat with Terraform co-founder Do Kwon, through which significant internal information was shared.
Snyder highlights an incident from May 7, 2022. Terraform withdrew $150 million in TerraUSD from a liquidity pool for stablecoin trading without any public announcement. Approximately ten minutes later, Jane Street sold $85 million in TerraUSD back into the same pool — marking the firm’s largest single transaction.
Related Posts
The plaintiff contends that this transaction triggered a widespread sell-off of the token and hastened the collapse of the Terra ecosystem. The lawsuit also asserts that the company continued to leverage sensitive information for trading amid the decline of TerraUSD to generate profits.
Snyder seeks compensation for damages and the recovery of alleged illicit profits with interest. The case will be heard by a jury.
The collapse of the Terra ecosystem occurred in May 2022 following the loss of the algorithmic stablecoin TerraUSD’s peg to the dollar. The decline also affected the LUNA token, with total investor losses estimated at around $40 billion.
In 2024, Terraform filed for bankruptcy. In March of the same year, Do Kwon was arrested, pleaded guilty to two counts of fraud, and was sentenced to 15 years in prison in December 2025.
