New Lawsuit Claims Jane Street Front-Ran Key TerraUSD Trades Before Depeg

A court-appointed administrator overseeing the dismantling of Terraform Labs (LUNC) has launched legal action against quantitative trading firm Jane Street, accusing the company of exploiting confidential information to trade profitably during the final days of the Terra ecosystem.

The complaint, filed in federal court in Manhattan, claims the firm and several of its senior figures used private communications with Terraform staff to anticipate market-moving events and execute trades before those developments became public.

Todd Snyder, who is managing the wind-down of the bankrupt company, is seeking financial compensation from Jane Street, co-founder Robert Granieri, and traders Bryce Pratt and Michael Huang.

Alleged Backchannel Communications And The Curve Pool Trades

According to the filing, Jane Street established direct trading ties with Terraform years before the collapse but only ramped up activity in early 2022.

The lawsuit alleges that Pratt, who had previously worked at Terraform, reconnected with former colleagues and created informal channels through which internal updates were shared.

One such messaging group, described in the complaint as a conduit for non-public information, allegedly allowed the trading firm to monitor sensitive developments inside the crypto company.