Terraform liquidators accuse Jane Street of using a private Telegram group to obtain insider information, selling UST early and shorting

Odaily News, newly unsealed court documents reveal that Wall Street quantitative trading giant Jane Street is accused of obtaining non-public information from Terraform Labs through a private Telegram group called "Bryce’s Secret" before the 2022 Terra collapse. The firm allegedly sold approximately $192 million in UST early while establishing short positions, profiting around $134 million as the Terra ecosystem's roughly $40 billion imploded. The complaint states that on May 7, 2022, just nine minutes after Terraform withdrew $150 million in liquidity from the Curve pool, Jane Street sold about $85 million in UST on Curve, and the wallets involved were subsequently suspected to be key addresses that triggered UST's de-pegging. Jane Street denied the allegations, calling the lawsuit "baseless" and vowing to vigorously defend itself. The lawsuit also names co-founder Robert Granieri and trader Michael Huang, accusing them of violating federal securities laws and the Commodity Exchange Act. (CoinDesk)