Terra Receiver Sues Jane Street, Alleging Insider-Trade Front-Running

BlockBeats News, February 24th, according to WSJ report, Terraform Labs' court-appointed bankruptcy trustee has filed a lawsuit against Jane Street in the New York Federal Court, alleging that during Terra's collapse, Jane Street engaged in frontrunning using non-public insider information provided by Terra insiders and profited from it.

The complaint alleges that Jane Street established a secret channel through former intern Bryce Pratt to obtain confidential information from Terraform Labs insiders and that on May 7, 2022, within 10 minutes of Terraform Labs withdrawing 150 million TerraUSD from the Curve pool, Jane Street prematurely withdrew 85 million TerraUSD for frontrunning trades, a series of illicit profit-making activities that accelerated Terraform Labs' demise.