Administrator Sues Jane Street, Alleging Insider Trading Fueled Terraform's $40 Billion Implosion

The court-appointed administrator for Terraform Labs claims Jane Street employed a former Terraform employee to establish back-channel communications, obtaining advance knowledge of significant trades, such as a 150 million UST withdrawal from Curve3pool. The complaint details a specific 10-minute window where a wallet linked to Jane Street allegedly withdrew 85 million UST shortly after Terraform's move, without public announcement.

Jane Street has denied the allegations, calling them opportunistic and attributing the collapse to Terraform's management. The lawsuit also mentions Jump Trading, suggesting information may have been leaked through them.

This legal action is part of a broader effort to recover assets for creditors following the $40 billion implosion of Terra-Luna, which also led to the downfall of FTX.