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The trading company sued now due to the Terra collapse worth $40 billion
- Jane Street
- Founded in 2000
- Quantitative trading firm
- Major cryptocurrency market maker
May 2022:
- TerraUSD (UST) loses its peg to the US dollar
- LUNA experiences hyperinflation
~$40 billion wiped out
May 7, 2022:
- Terraform removes 150 million UST from Curve 3pool
- This move was not publicly announced
Minutes later:
- An account linked to Jane Street withdraws 85 million UST
- Liquidity drains even faster
- Value declines accelerate
May 9, 2022:
- UST crashes below $0.50
- The death spiral begins
- Billions are liquidated from the market
February 2026:
- Terraform’s bankruptcy manager files a lawsuit
- U.S. Federal Court in Manhattan
Claims:
- Insider trading
- Front-running liquidity moves
- Market manipulation during the crisis
- Reducing UST exposure by hundreds of millions
Names mentioned:
- Robert Granieri (Co-founder)
- Bryce Pratt
- Michael Hwang
Bryce Pratt:
- Former intern at Terraform
- Later joined Jane Street
- Allegedly created a private chat channel
Jane Street’s response:
- Denies all allegations
- Says the collapse was caused by Terraform fraud
- Describes the lawsuit as opportunistic
One of the biggest cryptocurrency collapse cases
Now linked to one of Wall Street’s largest trading firms.
$BTC
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