Jane Street, a prominent quantitative trading firm, is facing allegations of insider trading related to the 2022 Luna crash. A complaint filed by Terraform Labs’ bankruptcy trustee, Todd Snyder, in the U.S. District Court for the Southern District of New York, accuses Jane Street of withdrawing $85 million in UST from the Curve liquidity pool just minutes after Terraform Labs withdrew $150 million. This action allegedly occurred before the public was informed of Terraform's plans, suggesting Jane Street had prior knowledge.
The complaint highlights a private chat group, "Bryce's Secret," as a conduit for information between Jane Street and Terraform Labs. The lawsuit names Jane Street co-founder Robert Granieri and employee Michael Huang as defendants, alleging fraud and unjust enrichment. Jane Street has dismissed the lawsuit as a "desperate attempt" to extract money, attributing the losses to fraud by Terraform's Do Kwon, who has been sentenced to 15 years in prison.
This case follows a similar lawsuit against Jump Trading, accused of profiting from insider information during the Luna collapse. Both cases underscore ongoing concerns about insider trading and information asymmetry in the crypto market.
Jane Street Faces Allegations of Insider Trading Before Luna Crash
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