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Terraform Labs Sues Jane Street Over Alleged Insider Trading in Luna Collapse
Bankruptcy administrator claims market maker used private chat to obtain non-public info and front-run $40 billion implosion
Feb. 24, 2026 at 12:39pm
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Terraform Labs' bankruptcy administrator has sued market making firm Jane Street, alleging the firm used a private group chat titled 'Bryce's Secret' to obtain non-public information and front-run the $40 billion collapse of the Terra-Luna ecosystem in May 2022. The lawsuit claims Jane Street was able to unwind its high-risk positions just hours before the broader market reacted to the crisis, shielding it from catastrophic losses.
Why it matters
The collapse of the Terra-Luna ecosystem in 2022 was one of the biggest events in the history of cryptocurrency, wiping out billions in value and shaking investor confidence. This lawsuit alleges that a major market maker may have exploited insider information to profit from the crisis, raising questions about market manipulation and the need for greater regulatory oversight in the crypto space.
The details
The lawsuit centers on May 7, 2022, when Terraform Labs quietly withdrew 150 million TerraUSD from Curve's 3pool without announcing it. Less than 10 minutes later, a wallet allegedly linked to Jane Street withdrew 85 million TerraUSD from the same pool - at the time, the largest transaction ever recorded there. The combined removal of 235 million UST severely destabilized liquidity, causing TerraUSD to slip below its $1 peg and sparking a broader market panic. The lawsuit alleges Jane Street used non-public information obtained through a private chat group called 'Bryce's Secret' to front-run the developing crisis, allowing it to liquidate hundreds of millions in high-risk positions before the broader market reacted.
- On May 7, 2022, Terraform Labs quietly withdrew 150 million TerraUSD from Curve's 3pool without announcing it.
- Less than 10 minutes later, a wallet allegedly linked to Jane Street withdrew 85 million TerraUSD from the same pool.
The players
Terraform Labs
The company behind the Terra-Luna cryptocurrency ecosystem, which collapsed in 2022 in one of the biggest events in crypto history.
Jane Street
A major market making firm that is being sued by Terraform Labs' bankruptcy administrator for alleged insider trading during the Terra-Luna collapse.
Todd Snyder
The bankruptcy administrator for Terraform Labs who filed the lawsuit against Jane Street.
Robert Granieri
A co-founder of Jane Street.
Bryce Pratt
A Jane Street employee and former Terraform intern who allegedly established a private chat group to obtain non-public information.
What they’re saying
“We must not let individuals continue to damage private property in San Francisco.”
— Robert Jenkins, San Francisco resident
What’s next
The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.
The takeaway
This lawsuit highlights the need for greater regulatory oversight and transparency in the cryptocurrency market, as the alleged actions of Jane Street raise serious concerns about insider trading and market manipulation that could undermine investor confidence in the industry.
