{"id":94593,"date":"2026-02-24T09:49:11","date_gmt":"2026-02-24T06:49:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=94593"},"modified":"2026-02-25T10:23:29","modified_gmt":"2026-02-25T07:23:29","slug":"terra-representatives-accuse-jane-street-of-ecosystem-collapse","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/terra-representatives-accuse-jane-street-of-ecosystem-collapse\/","title":{"rendered":"Terra Representatives Accuse Jane Street of Ecosystem Collapse"},"content":{"rendered":"

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<\/a>.\u00a0<\/p>\n

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.\u00a0<\/p>\n

\n

“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.\u00a0<\/em><\/p>\n<\/blockquote>\n

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.<\/p>\n

Jane Street rejected the allegations, attributing the ecosystem’s collapse to “multi-billion dollar fraud” by its management.\u00a0<\/p>\n

Details\u00a0<\/h2>\n

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.\u00a0<\/p>\n

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.\u00a0<\/p>\n

According to the plaintiff, Jane Street used information obtained through insiders to conduct profitable trades.<\/p>\n

Another Involved Party\u00a0\u00a0<\/h2>\n

In December 2025, Snyder filed a lawsuit <\/a>against Jump Trading and its top executives. The reason was a series of secret agreements between the market maker<\/a> and Terraform, which provided for artificially inflating the value of TerraUSD.\u00a0<\/p>\n

The claims against the defendants amounted to $4 billion.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Collapse and Verdict\u00a0<\/h2>\n

Under Do Kwon’s leadership, Terraform Labs collapsed in 2022<\/a>. At that time, its algorithmic stablecoin<\/a> TerraUSD lost its dollar peg, dragging the associated cryptocurrency Luna into a “death spiral.”\u00a0<\/p>\n

The catastrophe wiped out over $40 billion in cryptocurrency market capitalization and triggered a wave of bankruptcies in the lending sector.<\/p>\n

After unsuccessful attempts to save the ecosystem, in 2024, Terraform filed for bankruptcy and agreed to pay<\/a> the SEC<\/span> a fine of $4.47 billion.\u00a0<\/p>\n

In December 2025, Kwon was sentenced<\/a> to 15 years in prison in the United States. Prior to this, he pleaded<\/a> guilty to criminal charges of fraud and conspiracy.<\/p>\n","protected":false},"excerpt":{"rendered":"

Todd Snyder, the liquidator of Terraform Labs, has filed a lawsuit against Jane Street, accusing the trading platform of insider trading.<\/p>\n","protected":false},"author":1,"featured_media":94594,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"Todd Snyder filed a lawsuit against Jane Street, accusing it of insider trading.","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,852],"class_list":["post-94593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"181","promo_type":"1","layout_type":"1","short_excerpt":"Todd Snyder filed a lawsuit against Jane Street, accusing it of insider trading.","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=94593"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94593\/revisions"}],"predecessor-version":[{"id":94595,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/94593\/revisions\/94595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/94594"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=94593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=94593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=94593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}