Terra Luna Classic News: Court Docs Reveal New Details in Jane Street Insider Trading Case
Highlights
- Jane Street used a private Telegram channel for insider info from Terraform Labs employees to dump UST.
- The firm sold $192 million in UST before depeg and made $134 million by shorting tokens amid crash.
- Terra Luna Classic and USTC prices rise amid new details in Jane Street insider trading case.
Terra Luna Classic News: Jane Street used a private Telegram channel to receive insider information from Terraform Labs employees, according to an unsealed court filing. TFL administrators accused Jane Street of insider trading to sell its entire UST position before the depeg and making profits by shorting tokens during the $40 billion Terra-LUNA crash.
Jane Street and Terraform Labs Insiders Used Telegram Channel to Dump UST
Todd R. Snyder, the court-appointed Terraform Labs bankruptcy administrator, has filed a detailed redacted complaint in the Southern District of New York Court, accusing quant trading firm Jane Street.
It also sued co-founder Robert Granieri, and employees Bryce Pratt, a former Terraform intern, and Michael Huang for insider trading, fraud, and market manipulation that allegedly contributed to the Terra-LUNA crash.
The news court filing builds on earlier allegations and seeks disgorgement of profits, damages, and other remedies on behalf of Terraform’s estates, Luna Foundation Guard (LFG), and individual victims.
The complaint revealed that Jane Street used confidential connections to Terraform insiders and a private Telegram messaging group dubbed “Bryce’s Secret” to obtain insider information. The group is named after defendant Bryce Pratt, a former Terraform intern who later joined Jane Street as a systems developer.
Plaintiffs allege Jane Street used this and other backchannels to obtain non-public information about Terraform’s assets, strategies, liquidity needs, and potential investments.
This allegedly allowed the firm to sold $192 million in UST (now USTC), causing the algorithmic stablecoin to depeg. The firm also profited around $134 million by shorting Terra-related assets during the crash.
Terra Luna Classic Rise Amid Filing News
Terraform Labs administrator quoted that “Jane Street made a killing on these trades.” He claimed such accurate trades are practically impossible without the inside information. The firm is also alleged to cover its tracks by deleting traces of a linked crypto wallet, which has not been accessed since May 2022.
LUNC price jumped more than 2% amid Jane Street insider trading news, currently trading at $0.0000768. The 24-hour low and high are $0.0000754 and $0.0000784, respectively.
Trading volume has decreased by 2% over the past 24 hours. Notably, Terra Luna Classic has dropped 37% in May after an almost 250% rally in a month.
Meanwhile, USTC price has also jumped almost 5% to $0.0063 in the last 24 hours. It climbed from $0.0060 intraday low to a high of and high $0.0064 amid a 44% rise in trading volume over the last 24 hours.
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