Terraform Estate Sues Jane Street, Alleges Insider Trading Tied to 2022 UST/LUNA Crash
The lawsuit accuses the trading firm of positioning around undisclosed liquidity shifts as TerraUSD and LUNA unraveled; Jane Street denies the claims.
Terraform's estate and administrator have filed a lawsuit accusing Jane Street, a large global trading firm, of insider trading and trades that the complaint says sped up the 2022 collapse of TerraUSD (UST) and LUNA, alleging the firm positioned itself around undisclosed liquidity shifts during the unraveling [1][2][4].
The complaint frames the trading activity as linked to the UST and LUNA crash and includes allegations of front‑running and trading on communicated information that purportedly hastened the collapse [1][4][5].
Jane Street has denied the allegations, calling the lawsuit a "desperate" and "baseless" attempt to extract money [3].
Observers and coverage note the case could reshape trust in crypto market makers and underscores systemic risks in crypto markets, with commentators saying it may prompt renewed calls for stricter oversight [1][5].
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Citations
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- 1Legal Battle Erupts in Terra Jane Street LawsuitCoinoMedia• Feb 24, 2026
- 2Terraform admin blames Jane Street alleged insider trading for collapseCointelegraph• Feb 24, 2026
- 3Jane Street faces claims of insider trading that sped up Terraform's 2022 collapseCoinDesk• Feb 24, 2026
- 4
- 5Jane Street sued for alleged front-running trades that accelerated Terraform Labs meltdownCrypto Briefing• Feb 24, 2026
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