Terraform admin blames Jane Street alleged insider trading for collapse
Terraform Labs administrator Todd Snyder accused Jane Street of communicating with the now-collapsed firm and trading on the information, hastening its collapse.
The court-appointed administrator overseeing the bankruptcy of crypto company Terraform Labs has sued trading firm Jane Street, accusing it of insider trading that worsened the collapse of the multibillion-dollar Terra ecosystem.
On Monday, Todd Snyder, Terraform’s court-appointed administrator, sued Jane Street, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang in a Manhattan federal court, accusing them of “misappropriating confidential information and manipulating market prices.”
The heavily redacted complaint claimed Jane Street used connections with “Terraform insiders to learn material non-public information” about the company and used the information to sell tokens tied to the Terra blockchain that worsened its collapse.