Terraform Labs bankruptcy trustee sues Jane Street, accusing it of front-running trades using insider information

ZkProver · 2026-02-24T00:20:39+00:00

The court-appointed bankruptcy trustee of Terraform Labs has sued Jane Street in the U.S. Federal Court in New York, accusing it of using insider information to front-run trades, profit, and accelerate the collapse of Terraform Labs. The complaint mentions that Jane Street also made large withdrawals shortly after Terraform Labs divested, allegedly profiting illegally.

ZkProver

2026-02-24 00:20:39

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ChainCatcher reports that, according to WSJ, the court-appointed bankruptcy trustee for Terraform Labs has filed a lawsuit in the U.S. District Court in New York against Jane Street, accusing them of engaging in front-running trades and profiting during the Terra collapse by utilizing non-public insider information provided by Terra insiders.

The complaint states that shortly after Terraform Labs withdrew 150 million TerraUSD (UST) from the Curve liquidity pool, a wallet address associated with Jane Street also withdrew 85 million UST from the same pool. A series of these operations illegally profited and accelerated the demise of Terraform Labs.

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