Todd Snyder, the liquidator of Terraform Labs, has filed a lawsuit against Jane Street, accusing the trading platform of insider trading. This was reported by The Wall Street Journal.
He believes that the actions of the platform, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang accelerated the collapse of Do Kwon’s ecosystem. Snyder stated that the mentioned individuals used non-public information obtained from Terraform insiders to conduct front-running trades.
“Jane Street abused its market connections to manipulate the market in its favor during one of the most significant events in cryptocurrency history,” the documents state.
The plaintiff added that his team will employ all available mechanisms against those who used their position to gain “substantial profits” at the expense of Terraform Labs’ creditors.
Jane Street rejected the allegations, attributing the ecosystem’s collapse to “multi-billion dollar fraud” by its management.
Details
According to the complaint cited by WSJ, Jane Street sent employee Bryce Pratt to re-establish contacts with former colleagues from Terraform. The chat created for communication was used as a channel for transmitting confidential information, Snyder claims.
The lawsuit cited a specific episode: on May 7, 2022, Terraform Labs secretly withdrew 150 million TerraUSD from the Curve3pool. Within 10 minutes, a wallet allegedly linked to Jane Street moved another 85 million TerraUSD from there. The details and timing of these operations were not disclosed by the platform’s representatives.
According to the plaintiff, Jane Street used information obtained through insiders to conduct profitable trades.
Another Involved Party
In December 2025, Snyder filed a lawsuit against Jump Trading and its top executives. The reason was a series of secret agreements between the market maker and Terraform, which provided for artificially inflating the value of TerraUSD.
The claims against the defendants amounted to $4 billion.
Jump is also mentioned in the new case against Jane Street. According to Snyder, part of the insider information could have reached the trading platform through Jump Trading.
As evidence, he cited an episode from May 9, 2022, when TerraUSD was already losing its peg. Pratt created a group chat with Do Kwon and Jane Street representatives to express interest in buying Luna or Bitcoin. Kwon replied that Jump co-founder Bill DiSomma should have already contacted them regarding Terraform’s capital raising.
Collapse and Verdict
Under Do Kwon’s leadership, Terraform Labs collapsed in 2022. At that time, its algorithmic stablecoin TerraUSD lost its dollar peg, dragging the associated cryptocurrency Luna into a “death spiral.”
The catastrophe wiped out over $40 billion in cryptocurrency market capitalization and triggered a wave of bankruptcies in the lending sector.
After unsuccessful attempts to save the ecosystem, in 2024, Terraform filed for bankruptcy and agreed to pay the SEC a fine of $4.47 billion.
In December 2025, Kwon was sentenced to 15 years in prison in the United States. Prior to this, he pleaded guilty to criminal charges of fraud and conspiracy.