Terraform Accuses Jane Street of Leveraging Secret Telegram Group
Terraform Labs administrator Todd Snyder alleges Jane Street traders used insider information from Terraform employees to unload a $192 million TerraUSD (UST) position just hours before the stablecoin’s May 2022 collapse. Snyder accuses Jane Street, co-founder Robert Granieri, and traders Bryce Pratt and Michael Huang of insider trading and shorting Terra tokens, making over $134 million amidst the crash. The complaint details a private chat called “Bryce’s Secret,” involving Pratt—a former Terraform intern—who continued soliciting confidential information after joining Jane Street. The suit claims Jane Street also shorted UST and LUNA after learning of confidential rescue plans, and minimized post-crash traceability by deactivating trading wallets. Jane Street has called the suit meritless and blames Terraform management for the collapse, while stating they will contest the claims in court. The Terra collapses triggered a broader crypto market crash and bankruptcies. Terraform filed for bankruptcy in 2024, and its co-founder Do Kwon is now serving a 15-year sentence for conspiracy and wire fraud.
