Terraform liquidator accuses Jane Street of selling UST early and shorting based on insider information from a private Telegram group

Odaily Planet Daily News Newly unsealed court documents reveal that Wall Street quantitative trading giant Jane Street is accused of obtaining non-public internal information from Terraform Labs through a private Telegram group called "Bryce’s Secret" ahead of the 2022 Terra collapse. It allegedly sold approximately $192 million UST early while establishing short positions, profiting around $134 million during the collapse of Terra's roughly $40 billion ecosystem. The complaint claims that on May 7, 2022, just nine minutes after Terraform withdrew $150 million in liquidity from the Curve pool, Jane Street sold approximately $85 million UST on Curve. The associated wallet was later suspected to be a key address that triggered the UST de-pegging. Jane Street denies the allegations, calling the lawsuit "baseless" and stating it will 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)