Hassan Maishera
TL;DR
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Terraform Labs’ liquidation administrator, Todd Snyder, has sued Jane Street.
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The administrator accused the firm of insider trading leading up to the collapse of Terra-Luna.
Terraform Labs Sues Jane Street
The administrator overseeing Terraform Labs' liquidation has sued Jane Street, accusing the trading firm of engaging in insider trading that accelerated the collapse of theTerra-Luna ecosystem.
In a report by the Wall Street Journal, Terraform Labs' liquidation administrator, Todd Snyder, filed the complaint on Monday. The complaint was filed against Jane Street, co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang.
Snyder alleges that Jane Street used non-public information it obtained from Terraform Labs insiders to front-run trading.
The report quoted Snyder stating that,
"Jane Street abused market relationships to rig the market in its favor during one of the most consequential events in crypto history.”
Snyder added that his team will "pursue all avenues" against those who exploited their positions for "substantial profits" at the expense of Terraform Labs creditors.
The Jane Street team has reportedly disputed Snyder's claim, stating that Terra-Luna's collapse was a result of a "multibillion-dollar fraud" perpetrated by Terraform's management.
Jane Street added that it will defend against the "opportunistic claims" vigorously.
This latest development is the continuation of a case that began when Terraform Labs, led by founder Do Kwon, collapsed in 2022 when its algorithmic stablecoin TerraUSD depegged, falling into a death spiral alongside its sister cryptocurrency Luna.
The collapse resulted in over $40 billion wiped out fromthe cryptocurrency market, causing a brutal contagion that triggered a wave of bankruptcies across the crypto lending industry.
Terraform filed for bankruptcy in 2024 following several unsuccessful attempts to revive the ecosystem. The company agreed to pay the Securities and Exchange Commission $4.47 billion in penalties.
The founder, Do Kwon, was sentenced to 15 years in U.S. prison following his guilty plea to two criminal counts back in August.
According to the report, Jane Street sent its employee and ex-Terraform Labs member Bryce Pratt to form communication lines with his former colleagues at the crypto firm, including its software engineer and the head of business development.
Terraform’s administrator claimed that the chat group was used as a channel to bring Terraform-related information to Jane Street, Snyder claims.
The report further added that Jane Street allegedly used those communication channels to obtain non-public information about Terraform and pursue insider trading for profit.
Terraform cited an instance where it withdrew 150 million TerraUSD from the Curve3pool on May 7, 2022, without making an announcement. Within 10 minutes, a wallet allegedly linked to Jane Street withdrew an additional 85 million TerraUSD from the same pool.
This latest lawsuit comes after Snyder sued Jump Trading and its top executives in December 2025. Snyder claimed that Jump "actively exploited" the Terraform Labs ecosystem by entering into a backdoor deal to inflate the value of algorithmic stablecoin TerraUSD before it imploded.
In this latest lawsuit, Snyder claimed that some of the non-public information was leaked to Jane Street through Jump Trading. The administrator sought $4 billion in damages from the defendants.
