{"id":1020,"date":"2026-02-25T12:17:52","date_gmt":"2026-02-25T12:17:52","guid":{"rendered":"https:\/\/blog.coinsignals.net\/?p=1020"},"modified":"2026-02-25T12:17:52","modified_gmt":"2026-02-25T12:17:52","slug":"terraform-labs-bankruptcy-estate-sues-jane-street-over-alleged-pre-crash-trading","status":"publish","type":"post","link":"https:\/\/blog.coinsignals.net\/index.php\/2026\/02\/25\/terraform-labs-bankruptcy-estate-sues-jane-street-over-alleged-pre-crash-trading\/","title":{"rendered":"Terraform Labs Bankruptcy Estate Sues Jane Street Over Alleged Pre Crash Trading"},"content":{"rendered":"\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"739\" height=\"415\" data-id=\"1021\" src=\"https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1650.jpeg\" alt=\"\" class=\"wp-image-1021\" srcset=\"https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1650.jpeg 739w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1650-300x168.jpeg 300w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1650-520x292.jpeg 520w, https:\/\/blog.coinsignals.net\/wp-content\/uploads\/2026\/02\/IMG_1650-610x343.jpeg 610w\" sizes=\"auto, (max-width: 739px) 100vw, 739px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>The bankruptcy administrator overseeing the wind down of Terraform Labs has filed a lawsuit against Jane Street, accusing the trading firm of using insider information to profit before and during the collapse of the Terra Luna ecosystem. The complaint was submitted in Manhattan federal court and seeks damages tied to alleged positioning ahead of the market crash that devastated investors.<\/p>\n\n\n\n<p>According to the filing, Jane Street and several employees, including co founder Robert Granieri, are accused of obtaining material nonpublic information from insiders at Terraform and using it to execute highly profitable trades. The administrator claims the firm leveraged close market relationships to gain an unfair advantage during one of the most significant collapses in crypto history.<\/p>\n\n\n\n<p>The lawsuit outlines specific events in May 2022. On May 7, Terraform moved 150 million TerraUSD from the Curve liquidity pool without public notice. Within minutes, a wallet allegedly linked to Jane Street withdrew 85 million TerraUSD from the same pool. Days later, as TerraUSD began losing its dollar peg, internal communications were reportedly set up between Terraform executives and Jane Street representatives to discuss potential bids on Luna, while the trading firm allegedly continued to profit from volatility.<\/p>\n\n\n\n<p>Jane Street has strongly denied the allegations, describing the lawsuit as an attempt to recover funds lost due to what it calls multibillion dollar fraud by Terraform\u2019s own leadership. The firm stated it will defend itself vigorously against what it considers baseless claims.<\/p>\n\n\n\n<p>Terraform Labs ultimately collapsed in May 2022 after TerraUSD failed to maintain its peg and Luna plunged to near zero, wiping out roughly 40 billion dollars in value and impacting hundreds of thousands of investors globally. The company filed for bankruptcy in January 2024 and later established a wind down trust to manage creditor claims. Co founder Do Kwon is now serving a 15 year prison sentence after pleading guilty to criminal charges related to the collapse.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bankruptcy administrator overseeing the wind down of Terraform Labs has filed a lawsuit against Jane Street, accusing the trading firm of using insider information to&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1020","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/comments?post=1020"}],"version-history":[{"count":1,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1020\/revisions"}],"predecessor-version":[{"id":1022,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/posts\/1020\/revisions\/1022"}],"wp:attachment":[{"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/media?parent=1020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/categories?post=1020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.coinsignals.net\/index.php\/wp-json\/wp\/v2\/tags?post=1020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}