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Court documents allege Jane Street used insider information from Terraform to short UST, profiting $134 million

According to recently unsealed court documents, Jane Street is alleged to have obtained insider information from Terraform Labs via a private Telegram group named "Bryce's Secret."The documents claim that Jane Street subsequently sold approximately $192 million worth of UST when it was near its peg price, and profited around $134 million by shorting UST during the collapse of TerraUSD and the evaporation of roughly $40 billion in market value from the Terra ecosystem. (CoinDesk)

Terraform Liquidator Accuses Jane Street of Obtaining Inside Information via Telegram Private Group

According to CoinDesk, newly unsealed court documents allege that Jane Street, a major Wall Street quantitative trading firm, obtained non-public internal information from Terraform Labs via a private Telegram group named “Bryce’s Secret” prior to the 2022 Terra collapse. The firm is accused of selling approximately $192 million worth of UST in advance and establishing short positions, thereby profiting roughly $134 million amid the collapse of the Terra ecosystem—valued at approximately $40 billion. The complaint states that on May 7, 2022—just nine minutes after Terraform withdrew $150 million in liquidity from the Curve pool—Jane Street sold around $85 million worth of UST on Curve. The associated wallet was subsequently suspected of being a key address contributing to UST’s de-pegging. However, Jane Street denies these allegations, calling the lawsuit “baseless,” and states it will vigorously defend itself.