TechFlow News, May 20: According to a CoinDesk report, newly unsealed court documents allege that Jane Street, a major Wall Street quantitative trading firm, obtained non-public internal information from Terraform Labs via a private Telegram group named “Bryce’s Secret” prior to the 2022 Terra collapse. The firm allegedly sold approximately $192 million worth of UST and established short positions ahead of the crash, profiting roughly $134 million as the Terra ecosystem collapsed by approximately $4 billion.
The complaint states that on May 7, 2022—just nine minutes after Terraform withdrew $150 million in liquidity from the Curve pool—Jane Street sold approximately $85 million worth of UST on Curve. The associated wallet was subsequently suspected of being a key address contributing to UST’s de-pegging. However, Jane Street denies the allegations, calling the lawsuit “baseless” and stating it will vigorously defend itself.
