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

Odaily reports, newly unsealed court documents reveal that Wall Street quantitative trading giant Jane Street is alleged to have accessed non-public internal information from Terraform Labs through a private Telegram group called "Bryce’s Secret" prior to the 2022 Terra collapse. It is claimed that Jane Street sold approximately $192 million in UST ahead of the crash while establishing short positions, profiting around $134 million from the $40 billion collapse of the Terra ecosystem. According to the complaint, on May 7, 2022, just nine minutes after Terraform withdrew $150 million in liquidity from the Curve pool, Jane Street sold approximately $85 million in UST on Curve. The related wallet addresses are suspected to be key addresses that triggered the de-pegging of UST. Jane Street has denied 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)