Jane Street Gets Hit With 3rd Lawsuit Over Terra Luna Fiasco – Here We Go Again!

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Key Highlights

  • Terraform Labs’ administrator has slapped Jane Street with three lawsuits over its supposed hand in the 2022 Terra and LUNA disaster.
  • The lawsuits argue Jane Street used top-secret insider info to make trades that turned the crash into an even bigger disaster.

Oh, what’s this? Jane Street, the trading whiz, is now facing its THIRD lawsuit from Terraform Labs. This time, it’s all about the 2022 LUNA and TerraUSD crash. The fresh lawsuit was filed by the court-appointed bigwig Todd Snyder, who’s trying to get back the money for poor old creditors after Terraform’s messy bankruptcy.

According to court docs, the first lawsuit popped up on February 23, 2026, in a Manhattan federal court. But guess what? Some of the juicy details are hidden from the public. What’s clear though is that Jane Street might’ve played a role in turning the TerraUSD and LUNA crash from a bad situation into an absolute nightmare back in May 2022. The complaint is all about whether Jane Street had a sneak peek at private Terraform intel before the big market wipeout.

Hold on to your hats, because just a day later, on February 24, another lawsuit appeared-this one all hush-hush. Details? Nah, not for you. This case was handed to Judge Dale E. Ho, and right around the same time, another related filing popped up in front of Judge Andrew L. Carter Jr. Now we’re up to THREE lawsuits, all tangled up in the same mess, but each handled separately. Talk about a courtroom soap opera!

Insider Trading Allegations

The lawsuits claim Jane Street’s got some explaining to do, accusing them of using “material non-public information”-which, for the uninitiated, is a fancy way of saying “inside scoops.” Apparently, this info helped Jane Street make some well-timed decisions, like selling TerraUSD tokens when the market was already on the edge. Big trades were made just before the whole ecosystem crashed, putting even more pressure on the market and sending the crash spiraling out of control.

Snyder, the legal guardian of Terra’s creditors, is on a mission to get these funds back. According to him, the case is all about going after Jane Street on behalf of all the poor souls who got wrecked by the crash. Oh, and it’s also about looking into trading moves that happened during one of crypto’s biggest disasters. The lawsuit’s got some big names on it too: Jane Street co-founder Robert Granieri and employees Bryce Pratt and Michael Huang.

Jane Street Responds to the Lawsuit

Of course, Jane Street isn’t just sitting there like a guilty puppy. They’ve denied all the claims, saying they’ll fight back in court. In fact, they’ve called the whole thing “baseless” and claimed it’s just a desperate grab for cash. According to them, the Terra and LUNA mess was all due to Terraform’s own internal chaos, not some rogue trading. They also insisted they played by the rules, and didn’t take advantage of any inside info. Classic defense move, right?

What Happened With Terraform

Ah, Terraform. Founded by Do Kwon, this whole saga began in May 2022 when their algorithmic stablecoin TerraUSD lost its grip on the U.S. dollar. It was a disaster, and in a matter of days, LUNA followed suit and crashed, wiping out a staggering $40 billion in market value. Oops. Terraform filed for bankruptcy in 2024, and a big shot administrator was put in charge of trying to salvage what’s left. But now with three lawsuits flying around, it’s clear that this legal mess is far from over. Talk about a tangled web!

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2026-02-26 08:58