Crypto’s most infamous collapse is back in the spotlight, and this time the blast radius reaches deep into Wall Street. A new lawsuit doesn’t just revisit Jane Street sued for alleged insider trading in Terra's $40B collapse. Lawsuit claims the firm front-ran UST trades using non-public info, accelerating the 2022 meltdown.

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Terraform Labs bankruptcy administrator Todd R. Snyder has sued Jane Street Group in Manhattan federal court, alleging the trading firm used material non-public information to front-run the May 2022 TerraUSD collapse. The complaint centers on a 10-minute window in which a wallet linked to Jane Street withdrew 85 million TerraUSD from the Curve3pool shortly after Terraform Labs made an unannounced 150 million TerraUSD withdrawal from the same pool. A former Terraform intern at Jane Street is accused of operating a back-channel for confidential information. Jane Street denies the claims, calling the suit baseless and pointing to Do Kwon's admitted fraud as the root cause. The case is part of a broader recovery effort that also includes a $4 billion suit against Jump Trading for allegedly exploiting the Terra ecosystem.

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