Breaking: Terraform Labs Sues Jane Street for Insider Trading, Alleging LUNA Crash The court-appointed liquidation manager of Terraform Labs (the company behind the 2022 TerraUSD/LUNA crash) has filed a lawsuit accusing high-frequency trading firm Jane Street of insider trading, allegedly accelerating or contributing to the project's collapse. This news comes from a report published by The Wall Street Journal hours ago, which details the new lawsuit, which appears to have been filed in a U.S. federal court (likely following a pattern from previous Terraform-related lawsuits, such as the one in the Northern District of Illinois). Key allegations in the lawsuit (according to The Wall Street Journal and related reports) allege that Jane Street used non-public insider information obtained from Terraform insiders to withdraw or liquidate large amounts of funds/positions before the May 2022 crash, thereby profiting or minimizing losses, while ordinary investors and the entire ecosystem suffered huge losses (the Terra crash wiped out approximately $40 billion in market capitalization). According to reports, a Jane Street employee created a secret group chat (likely on Telegram or a similar platform) to transmit sensitive, non-public information regarding Terraform's instability, its peg to TerraUSD (UST), or an impending liquidity crisis. This is considered insider trading under securities laws and may have violated fiduciary duties or market manipulation rules. It allows Jane Street to use Material Non-Public Information (MNPI) to its advantage, thereby "accelerating" Terraform's collapse by undermining market confidence, depleting liquidity, or sending ominous signals to other participants.