The legal fallout from one of crypto’s biggest collapses is taking another major turn.🤸
The Office of the Terraform Labs Plan Administrator has filed a lawsuit against quantitative trading giant Jane Street, alleging insider trading, market manipulation, and deceptive trading practices. According to the complaint, Jane Street used confidential information obtained through backchannel communications with insiders to front-run trades and exit positions right before TerraUSD lost its dollar peg in May 2022.
While Terraform’s estate claims these massive liquidity drains accelerated the death spiral that wiped out over $40 billion in market value, Jane Street maintains that the lawsuit is a groundless attempt to blame external traders for what was essentially a massive fraud run by Terraform’s own management.
$LUNC $USTC #CoinVahini #TerraUSD #CryptoRegulation #MarketManipulation
The Office of the Terraform Labs Plan Administrator has filed a lawsuit against quantitative trading giant Jane Street, alleging insider trading, market manipulation, and deceptive trading practices. According to the complaint, Jane Street used confidential information obtained through backchannel communications with insiders to front-run trades and exit positions right before TerraUSD lost its dollar peg in May 2022.
While Terraform’s estate claims these massive liquidity drains accelerated the death spiral that wiped out over $40 billion in market value, Jane Street maintains that the lawsuit is a groundless attempt to blame external traders for what was essentially a massive fraud run by Terraform’s own management.
$LUNC $USTC #CoinVahini #TerraUSD #CryptoRegulation #MarketManipulation