Court Filing Accuses Jane Street of Using Terraform Backchannel Before UST Crash

A newly unsealed court filing in the Terraform Labs bankruptcy case accused Jane Street of using nonpublic information before TerraUSD's $40 billion collapse. The filing said a private Telegram channel called 'Bryce's Secret' gave Jane Street access to Terraform insiders as the firm reduced UST exposure before the stablecoin lost its peg in May 2022. Todd Snyder, Terraform's court-appointed administrator, sued Jane Street and three individuals in Manhattan federal court on Feb. 23 over alleged misuse of confidential information and market manipulation. The filing also linked Terraform's roughly $150 million UST withdrawal from Curve 3pool to an unidentified $85 million swap that followed less than 10 minutes later.
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