Jane Street Sued for Insider Trading by Terraform Administrator

Jane Street Group LLC was sued for alleged insider trading by the administrator winding up the affairs of Terraform Labs, the firm whose $40 billion collapse in 2022 roiled the crypto markets and contributed to the collapse of FTX.

Jane Street used “non-public information to front-run trading that hastened the collapse of Terraform,” Todd Snyder, a bankruptcy court-appointed administrator, claimed in a redacted complaint filed Monday in Manhattan federal court. Misusing the information allowed Jane Street “to unwind hundreds of millions of dollars in potential exposure at precisely the right time, mere hours before the Terraform ecosystem collapsed.” ...