# UST Related Articles

HTX News Center provides the latest articles and in-depth analysis on "UST", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

How Risky is the "Death Spiral" of MSTR and STRC?

Summary: This article explores the perceived "death spiral" risk between MicroStrategy (MSTR), its Bitcoin holdings, and its perpetual preferred stock (STRC), drawing comparisons to the LUNA-UST collapse. While both systems feature price anchors, high yields for holders, and potential feedback loops, their core mechanisms differ fundamentally. The MSTR-STRC structure relies on continuous financing to sustain its high dividend payouts, primarily through stock ATM offerings. A negative feedback cycle could occur: falling MSTR stock price makes raising equity capital harder, increasing pressure to sell Bitcoin, which undermines STRC confidence and further depresses MSTR. However, unlike LUNA-UST's automated, direct linkage, the MSTR-STRC loop is weaker and has brakes: STRC dividends can be deferred or rates lowered, and STRC holders have a $100/share liquidation preference in bankruptcy, providing a price floor. The company's sustainability hinges on its ability to continue financing. Its current ~$900 million USD reserves cover only about 6.3 months of its ~$1.71 billion annual interest/dividend burden. The next six months are critical, aligning with both the potential bottom in Bitcoin's four-year cycle and the depletion timeline of its reserves. While a LUNA-style catastrophic collapse is deemed highly unlikely due to structural differences, the key question is whether MicroStrategy can navigate this period through healthy deleveraging to restart its capital engine.

Foresight News06/05 08:15

How Risky is the "Death Spiral" of MSTR and STRC?

Foresight News06/05 08:15

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

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

marsbit05/22 04:53

Wall Street's Most Mysterious Money Machine: Dumping Bitcoin at 10 AM Sharp Every Day

A mysterious pattern dubbed the "Jane 10 AM Dump" has been observed in Bitcoin markets, where prices drop sharply each day at 10 AM EST, coinciding with the US stock market open. Traders and media, including ZeroHedge, point to Jane Street, a major market maker and large holder of BlackRock's Bitcoin ETF (IBIT), as the likely orchestrator—selling at 10 AM to then buy back at lower prices. This theory gained traction amid a lawsuit from Terraform Labs' bankruptcy estate. The suit alleges Jane Street used insider information to exit TerraUSD (UST) positions just before its May 2022 collapse, avoiding $40 billion in losses. Key to the case is a former Terra intern, Bryce Pratt, who joined Jane Street and allegedly ran a secret chat group ("Bryce's Secret") to funnel non-public information from Terraform insiders. The complaint details that Jane Street, which had a prior trading relationship with Terraform, withdrew 85 million UST from a liquidity pool minutes after Terraform secretly pulled 150 million UST—before public panic began. Chain analysis suggests Jane Street systematically reduced exposure pre-collapse. Further supporting the pattern of misconduct, India's regulator SEBI fined Jane Street a record $570 million for a "pump-and-dump" scheme manipulating banking index options, exploiting retail investors. While unproven, the cases depict Jane Street as a powerful, secretive firm adept at leveraging information advantages, now under scrutiny for practices that blur ethical and legal lines. The "10 AM dump" pattern reportedly stopped after the Terra lawsuit, adding circumstantial weight to the allegations.

marsbit02/26 01:09

Wall Street's Most Mysterious Money Machine: Dumping Bitcoin at 10 AM Sharp Every Day

marsbit02/26 01:09

LUNA Countdown to Death: The "Prophetic Trade" Mystery Before the Evaporation of 40 Billion

Summary: In February 2026, Terraform Labs' bankruptcy liquidator filed a lawsuit against quantitative trading giant Jane Street in Manhattan federal court, alleging insider trading related to the May 2022 collapse of Terra (LUNA) and UST, which erased $40 billion in value. The complaint centers on a private chat group called "Bryce's Secret," through which Jane Street allegedly obtained non-public information. Specifically, it is claimed that Jane Street was tipped off about Terraform's plan to withdraw $150 million UST from the Curve liquidity pool. Ten minutes after the withdrawal, a wallet linked to Jane Street removed $85 million UST. Additionally, as UST crashed, Jane Street reportedly offered to buy Luna at a steep discount. This case follows a separate $4 billion lawsuit against Jump Trading, which allegedly profited from earlier UST depegging events and received secret Bitcoin transfers. Jane Street dismissed the suit as a desperate money grab, arguing the collapse was ultimately caused by Terraform's fraud. The cases highlight ongoing concerns about information asymmetry and insider advantages in crypto markets, despite their decentralized ethos.

比推02/25 05:39

LUNA Countdown to Death: The "Prophetic Trade" Mystery Before the Evaporation of 40 Billion

比推02/25 05:39

Terraform’s $40B Collapse Back in Spotlight as Jane Street Faces Insider Trading Lawsuit

Terraform Labs' $40 billion collapse is back in the spotlight as Jane Street faces an insider trading lawsuit. The complaint, filed by Terraform's bankruptcy administrator, alleges the trading giant used confidential information to avoid losses and hasten the ecosystem's downfall in May 2022. It claims Jane Street obtained non-public details through a former Terraform intern and executed trades minutes after Terraform secretly removed 150 million UST from a liquidity pool, before the information was public. Jane Street denies the allegations, blaming Terraform's management for the collapse. The case could set a precedent for oversight of institutional trading and information asymmetry in crypto markets.

bitcoinist02/24 21:02

Terraform’s $40B Collapse Back in Spotlight as Jane Street Faces Insider Trading Lawsuit

bitcoinist02/24 21:02

Jane Street drawn into Terra fallout as fresh lawsuit surfaces in 2026

A new lawsuit filed in the Southern District of New York on February 23 has revived scrutiny around the 2022 collapse of the Terra ecosystem, naming Jane Street among several parties referenced in connection with market activity surrounding the failed stablecoin project. The civil action seeks damages for losses suffered during Terra’s dramatic implosion, which erased tens of billions from the crypto market. The plaintiffs allege that a group of trading firms engaged in transactions that accelerated the breakdown of Terra’s algorithmic stablecoin mechanism. While not accused of criminal conduct, Jane Street is cited as a sophisticated entity whose trading activity intersected with Terra’s ecosystem during its collapse. The suit references the firm’s role in market structure and liquidity provision, which plaintiffs claim destabilized price dynamics. The filing highlights broader legal questions about the responsibility of large, professional trading firms operating within fragile crypto systems. It suggests their size and speed may have amplified structural weaknesses in Terra’s design, though it acknowledges the core failure stemmed from Terra’s economic model. Jane Street has not publicly commented. The case underscores how Terra’ collapse continues to generate legal, financial, and reputational fallout, reflecting growing scrutiny of traditional market actors in largely unregulated crypto environments.

ambcrypto02/24 16:31

Jane Street drawn into Terra fallout as fresh lawsuit surfaces in 2026

ambcrypto02/24 16:31

$40B Crypto Crash: Jane Street Sued Over Terra Insider Trading

Crypto firm Terraform Labs' wind-down administrator, Todd R. Snyder, has sued trading firm Jane Street and several individuals, including Bryce Pratt, for alleged insider trading, fraud, and market manipulation. The complaint, filed in Manhattan federal court, centers on trading activity around the May 2022 collapse of TerraUSD (UST) and Luna. It alleges Pratt, who moved from a Terraform internship to Jane Street, maintained a confidential back channel with Terraform insiders and shared material non-public information. The suit claims a specific 85 million UST trade by Jane Street "precipitated a steep sell off" and helped trigger the broader $40 billion ecosystem collapse. It cites private messages to argue Jane Street had an informational edge and was in direct contact with Terraform leadership during the crisis. Jane Street is expected to contest the allegations.

bitcoinist02/24 16:21

$40B Crypto Crash: Jane Street Sued Over Terra Insider Trading

bitcoinist02/24 16:21

Terraform Labs Administrator Sues Jane Street Over Terra Collapse

Terraform Labs' bankruptcy administrator has sued Jane Street, alleging insider trading related to the 2022 TerraUSD collapse. The lawsuit claims Jane Street used non-public information to withdraw around $85 million in TerraUSD from a liquidity pool before the stablecoin lost its peg to the U.S. dollar, which triggered a market crash wiping out billions. The administrator is seeking compensation and the return of alleged ill-gotten gains. Jane Street has denied the allegations and plans to defend itself in court. This case is part of the wider legal fallout from Terra's collapse and may test how traditional insider trading laws apply to decentralized finance markets.

TheNewsCrypto02/24 09:07

Terraform Labs Administrator Sues Jane Street Over Terra Collapse

TheNewsCrypto02/24 09:07

Jump Trading hit with $4B lawsuit tied to $50B Terra crash

In a $4 billion lawsuit, the administrator of Terraform Labs' bankruptcy has accused Jump Trading and its executives of unlawfully profiting from and contributing to the 2022 Terra collapse. The suit alleges Jump entered secret agreements to purchase LUNA tokens at a massive discount in exchange for artificially maintaining the peg of the TerraUSD (UST) stablecoin, hiding flaws in its algorithmic mechanism. The crash resulted in approximately $50 billion in losses. The filing further claims nearly 50,000 BTC from a reserve fund were transferred to Jump without a written agreement. This is not the first legal action against Jump related to Terra; a subsidiary previously paid a $123 million SEC settlement over misleading investors about UST's stability.

cointelegraph12/19 10:18

Jump Trading hit with $4B lawsuit tied to $50B Terra crash

cointelegraph12/19 10:18

Do Kwon in Jail But Terra Drama Continues — Bankruptcy Estate Sues Jump Trading

While Terra founder Do Kwon is serving a 15-year prison sentence, the fallout from the 2022 collapse of TerraUSD (UST) continues. The bankruptcy administrator for Terraform Labs has filed a lawsuit against Jump Crypto, alleging the trading firm engaged in shady deals with Kwon that contributed to UST's failure. The complaint claims Jump secretly profited from discounted LUNA tokens and manipulated the market by secretly propping up UST during a 2021 depegging event, masking its structural weaknesses. The lawsuit further alleges the Luna Foundation Guard improperly transferred nearly 50,000 BTC to Jump without a formal agreement. Seeking roughly $4 billion in damages, the administrator accuses Jump of market manipulation and self-dealing that enriched the firm while devastating retail investors and triggering a broader crypto market contagion.

ccn.com12/19 08:55

Do Kwon in Jail But Terra Drama Continues — Bankruptcy Estate Sues Jump Trading

ccn.com12/19 08:55

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