Jane Street’s Secret Telegram Chat Allegedly Helped Dump $192M UST Before Terra’s $40B Collapse

Key Takeaways:

• The administrator of Terraform Labs has filed accusations that Jane Street employed “insider information” from Terraform staff in order to dump UST ahead of the depeg, which would happen in 2022.
• A private Telegram group named “Bryce’s Secret” provided this group of traders with privileged information regarding Terraform’s liquidity, strategies and finances, according to court documents.
• The lawsuit requests damages and profits be disgorged for insider trading, fraud, and market manipulation in connection with the collapse of the Terra ecosystem.

The allegations have provoked a new round of questioning into one of crypto’s greatest failures. A new lawsuit filed in the U.S. District Court for the Southern District of New York alleges that quantitative trading giant Jane Street used internally leaked information about Terraform Labs to get off its huge holdings of UST’s stablecoin before the cryptocurrency lost its dollar peg.

The lawsuit has been brought by the court-appointed administrator for the company’s bankrupt estate, Todd Snyder, and the...