# Securities Fraud Related Articles

Jane Street Sued: Suspected of Using Telegram Insider Information to Exit and Short Before Terra Collapse, Profiting $134 Million

Wall Street trading giant Jane Street Group is facing a lawsuit alleging it used insider information from a private Telegram channel with a former Terraform Labs intern to avoid losses and profit from the collapse of the Terra ecosystem in May 2022. According to newly unsealed court documents, Jane Street allegedly sold nearly $192 million worth of the UST stable币 before its depeg, and then established short positions, netting approximately $134 million in profits. The suit, filed by Terraform's bankruptcy estate, claims the firm gained a critical "information advantage" through these private communications, allowing it to execute large sales, including an $85 million UST transaction on Curve Finance minutes after Terraform quietly withdrew liquidity. Jane Street has denied the allegations as "baseless" and moved to dismiss the case. A 2023 court ruling that classified UST and Luna as securities bolsters the legal basis of this suit.

marsbit05/22 04:53