In a significant new legal development, Terraform Labs’ liquidation administrator, Todd Snyder, has initiated a lawsuit against Jane Street for alleged insider trading related to the Terra-Luna collapse. The complaint, filed on Monday, accuses Jane Street, along with its co-founder and employees, of using non-public information obtained through former Terraform Labs insiders to engage in market manipulation. This lawsuit is one of several resulting from the collapse of Terraform Labs in 2022, which was marked by the destabilization of its stablecoin TerraUSD and subsequent market fallout, part of a broader legal crackdown on the misuse of proprietary information in the crypto industry.
Terraform Labs sues Jane Street over insider trading claims
