Jane Street rejects Terra Telegram insider trading claims
Jane Street has rejected new insider trading claims centred on a private Telegram channel during the 2022 Terra collapse.
- A Manhattan complaint accuses Jane Street of using a Telegram channel to exit $192 million of TerraUSD before UST lost its dollar peg.
- The suit names co-founder Robert Granieri and trader Michael Huang alongside a former Terraform intern who allegedly relayed non-public information.
- Jane Street called the complaint a transparent attempt to extract money and said it will defend vigorously against the claims.
A Manhattan federal complaint alleges Jane Street used a private Telegram channel to exit $192 million in TerraUSD before its May 2022 collapse. The suit claims the firm made approximately $134 million betting against the token as Terra’s ecosystem unraveled.
The case was filed by the administrator winding down Terraform Labs and also names Jane Street co-founder Robert Granieri and trader Michael Huang. The complaint alleges a former Terraform intern who later joined Jane Street relayed non-public information through the private channel, enabling the firm to sell ahead of the depeg.
The Telegram backchannel at the centre of the insider trading complaint
On May 7, 2022, Jane Street allegedly sold 85 million UST minutes after Terraform withdrew 150 million from a key Curve pool. Crypto.news has reported on the broader lawsuit, filed in February 2026 by court-appointed administrator Todd Snyder.
“This suit is a transparent attempt to extract money when it is well-established that the losses suffered by Terra and Luna holders were the result of a multi-billion dollar fraud perpetrated by the management of Terraform Labs,” a spokesperson said.
Jane Street asked a Manhattan court in April 2026 to dismiss the case with prejudice, arguing its trading was based on public information. The motion also cited the Wagoner rule, which limits a bankruptcy estate’s ability to sue third parties for losses tied to its own wrongdoing. The court has not yet ruled.
Why the case matters for crypto market regulation
The lawsuit draws on a 2023 ruling that UST and Luna qualified as securities. That precedent strengthens the legal footing for the securities fraud claims against Jane Street.
Terraform’s administrator also separately sued Jane Street in February 2026 over the initial front-running allegations tied to the Curve pool withdrawal.
Do Kwon, Terraform’s co-founder, has pleaded guilty to conspiracy and wire fraud and is serving a 15-year prison sentence. Administrator Todd Snyder previously stated that Jane Street’s trades hastened Terraform’s collapse by draining liquidity and accelerating market panic.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Overnight US Stocks | Fed Rate Hike Expectations Rise, Major Indexes Fall, Nvidia (NVDA.US) Continues to Drop 5.4%
At the close, the Dow Jones Index fell by 156.67 points, down 0.30%, to 52,233.08 points; the S&P 500 Index dropped 28.99 points, down 0.38%, to 7,520.95 points; and the Nasdaq Composite Index declined 187.26 points, down 0.74%, to 25,065.87 points.
CoreWeave (CRWV.US) Q3 revenue surged 168% year-on-year, raised full-year revenue guidance, surged about 5% after hours
Benefiting from the continued growth in demand for AI computing power, CoreWeave's third-quarter revenue increased by 168% year-on-year, surpassing Wall Street expectations, and the company has raised its full-year revenue guidance.
Uniswap leads tokenized stock DeFi TVL with $79.6 million, UNI eyes $9.80 target
IPO Roadshow Day Boosts Enterprise Office Market! Anthropic Launches Multiple AI Tools, Directly Challenging Microsoft Office
Anthropic has launched Claude Meetings, allowing Claude to join Google Meet video conferences in real-time and perform tasks, transforming Claude from a meeting note-taker into a real-time collaborator. AI whiteboard and spreadsheet features are now available, introducing Claude Whiteboards for team co-editing and Claude Sheets that can be created and modified by AI. The data analysis product Claude Data has officially launched, enabling seamless integration between enterprise data and third-party applications. Microsoft's stock decline has widened, at one point falling more than 3%.
Crypto prices
More
