Terraform Labs’ estate has filed a lawsuit against quantitative trading firm Jane Street, alleging that the firm abused insider knowledge to profit from Terra and that it inadvertently contributed to the downfall of the ecosystem.
“In this case, however, Jane Street Capital and its traders exploited the public’s participation in crypto markets and contributed to the collapse of Terraform’s cryptocurrency ecosystem. They did so by misappropriating confidential information and manipulating market prices,” the suit reads.
The filing is heavily redacted, but focuses on a move related to the UST Curve 3pool. Per Snyder, Terraform withdrew $150 million of UST from the pool, a move that “was not publicly announced,” to deploy it to 4pool in the coming week.
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