Regulations

Story: Terraform Labs Lawsuit Targets Jane Street Over $40 Billion Terra Crash

By Pankaj K

1 / 15

The Telegram Chat at the Center of Everything. The whole case basically hinges on a Telegram group called "Bryce's Secret.

2 / 15

Inside the Alleged Insider Operation. The suit lays out how Granieri approved suspect trades while Huang executed trades during UST's…

3 / 15

The $192 Million Exit and the Timing Problem. The timeline of Jane Street's UST trades is where things get really specific.

4 / 15

Terraform Labs is going after Jane Street Group hard. The company's appointed administrator, Todd Snyder, filed a lawsuit accusing Jane Street, co-founder Robert Granieri, and…

5 / 15

The whole case basically hinges on a Telegram group called "Bryce's Secret." Pratt allegedly created it to funnel confidential information between Jane Street staff and Terraform…

6 / 15

That's a pretty clean denial. But the unredacted filings tell a messier story.

7 / 15

The suit lays out how Granieri approved suspect trades while Huang executed trades during UST's 2022 depeg — moves that were allegedly based on information Pratt had passed along.

8 / 15

There's more. Jane Street staff were apparently interested in hiring Terraform's head of research — not a casual curiosity, but reportedly part of a deliberate effort to deepen…

9 / 15

Pratt also allegedly tried to calm concerns about Jane Street's visible wallet size. He told colleagues not to worry, citing insider estimates that other hedge funds had even…

10 / 15

The timeline of Jane Street's UST trades is where things get really specific. On February 11, the firm bought 10,000 UST. A month later, it picked up 10 million UST on Binance.

11 / 15

Related: Jane Street Reportedly Dumped Hundreds of Millions Before Terras $40 Billion Wipeout

12 / 15

Then, as the depeg started to bite, Jane Street ran what looks like a test. The firm sold $8 million in UST, apparently to check how stable the peg still was.

13 / 15

On May 7, Jane Street sold its entire $192 million UST stake. That same day, Terraform pulled 150 million UST from a liquidity pool without any public disclosure.

14 / 15

That withdrawal, the suit argues, helped trigger the broader market chaos that followed. UST lost its dollar peg. LUNA collapsed. Billions in value evaporated across days.

15 / 15

There's also the matter of a $1 billion capital raise that was being discussed internally. Jane Street employees were apparently skeptical about a proposed over-the-counter LUNA…

The Currency Analytics

Want the full story?