Todd Snyder, the court-appointed liquidator for Terraform Labs, has filed a lawsuit in New York federal court against Jane Street, its co-founder Robert Granieri, and two employees. The suit alleges that they engaged in insider trading using material non-public information from Terraform insiders, profiting and accelerating the company's collapse. According to the complaint, Jane Street established a private communication channel through former Terraform intern Bryce Pratt to access confidential information. On May 7, 2022, less than 10 minutes after Terraform withdrew 150 million TerraUSD from the Curve liquidity pool, Jane Street allegedly withdrew 85 million UST, continuing to trade on the information thereafter.
Terraform Labs Liquidator Sues Jane Street for Insider Trading
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