The judicial administrator of Terraform Labs, Todd Snyder, filed an amended lawsuit against quantitative trading firm Jane Street, accusing it of having used a private Telegram channel to obtain insider information from Terraform employees before the collapse of the Terra ecosystem in May 2022.
According to the filing, Jane Street traders created a secret group called “Bryce’s Secret“, in reference to Bryce Pratt, a former Terraform intern who later joined the firm as a systems developer.
The lawsuit alleges that Jane Street liquidated its entire $192 million TerraUSD position on May 7, 2022, hours before the stablecoin lost its dollar peg, and that it subsequently shorted UST and LUNA after learning confidential details of a rescue attempt, securing profits exceeding $134 million. The filing also notes that the firm attempted to reduce its visibility by deactivating the wallets linked to those transactions.
Jane Street described the lawsuit as opportunistic and announced it would defend itself vigorously. The firm had already sought in April the dismissal of the original complaint, filed in February. The Terra collapse, which destroyed nearly $40 billion in value, triggered a crisis that brought down Celsius, Three Arrows Capital, and FTX, among others.
Source:Â https://storage.courtlistener.com/recap/gov.uscourts.nysd.658503/gov.uscourts.nysd.658503.37.0_1.pdf
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