The administrator overseeing the wind-down of Terraform Labs has sued Wall Street trading powerhouse Jane Street, alleging the firm exploited insider access to accelerate one of cryptocurrency’s most devastating crashes.

Todd Snyder, the bankruptcy court-appointed plan administrator, claims Jane Street, co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang used confidential information from Terraform insiders to front-run trades. Those trades allegedly deepened the May 2022 unraveling of the terrausd (UST) stablecoin and the Luna token.

According to a Wall Street Journal report citing a heavily redacted complaint filed Feb. 23 in Manhattan federal court, Jane Street’s relationship with Terraform intensified in early 2022 when Pratt — a former Terraform intern — reestablished ties with ex-colleagues. A private chat dubbed “Bryce’s Secret” allegedly became a conduit for nonpublic information flowing to Jane Street.

The complaint alleges that when Terraform quietly withdrew 150 million UST from the Curve3pool liquidity pool on May 7, 2022, a wallet linked to Jane Street pulled 85 million UST from the same pool 10 minutes later. The administrator claims Jane Street made the move based on insider knowledge. The trades amplified market panic, hastening Terrausd’s depeg and Luna’s collapse to near zero, the complaint said.

“Jane Street abused market relationships to rig the market in its favor during one of the most consequential events in crypto history,” Snyder said, vowing to pursue damages for Terraform’s creditors.

Jane Street has dismissed the lawsuit as opportunistic.

“This desperate suit is a transparent attempt to extract money when it is well-established that the losses suffered by Terra and Luna holders were the result of a multibillion-dollar fraud perpetrated by the management of Terraform Labs,” a Jane Street spokesperson said.

The lawsuit follows a similar action against Jump Trading, which was accused of secretly profiting from Terra’s collapse. Together, the cases suggest that high-speed trading firms may have not only capitalized on Terraform’s instability but actively fueled its implosion.

Terraform filed for bankruptcy in January 2024, months before founder Do Kwon was sentenced to 15 years in prison for fraud.

• What is the lawsuit about? The Terraform Labs wind‑down administrator accuses Jane Street of insider trading that worsened Terrausd and Luna’s crash.
• Where was the case filed? The complaint was lodged in Manhattan federal court on Feb. 23, 2026.
• Why does it matter globally? Terraform’s $40 billion implosion hit investors worldwide and triggered ripple failures across the crypto sector.
• How has Jane Street responded? Jane Street denies wrongdoing, calling the suit opportunistic and blaming Terraform’s own fraud.

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