Jane Street Sued Over Alleged Insider Trading During Terra Collapse

CryptoProwl

Wed, May 20, 2026 at 9:58 AM EDT 1 min read

Quantitative trading firm Jane Street is being sued for allegedly engaging in insider trading during the 2022 collapse of Terraform Labs.

Liquidators in the Terraform Labs bankruptcy case have accused Jane Street of insider trading that netted the firm $134 million U.S. during the May 2022 Terra/LUNA stablecoin implosion.

The lawsuit claims that Jane Street front‑ran the Terraform Labs bankruptcy using non‑public information while many retail investors around the world were wiped out.

More From Cryptoprowl:

• Ripple, The Company Behind XRP, Is Valued At $50 Billion

• Eightco Secures $125 Million Investment From Bitmine And ARK Invest, Shares Surge

• Blockchain Projects Decline 75% As Developers Shift To A.I.

• Stanley Druckenmiller Says Stablecoins Could Reshape Global Finance

• New York Stock Exchange Invests $600 Million In Polymarket

The administrator in the Terraform Labs bankruptcy has filed a federal lawsuit accusing Jane Street, its co‑founder Robert Granieri, and several traders of insider trading. 

The lawsuit alleges Jane Street “used material, non‑public information obtained from Terraform insiders to front‑run market‑moving events” and profit from the stablecoin issuer’s collapse. 

The legal complaint alleges that Jane Street orchestrated a scheme that generated $134 million U.S. in unlawful profits as Terraform Labs’ algorithmic stablecoin lost its peg to the U.S. dollar and the ecosystem imploded.

The failure of Terraform Labs is estimated to have cost investors about $40 billion U.S. 

Jane Street has denied the allegations and asked a New York court to dismiss the case with prejudice, meaning it cannot be resurrected at a later date. 

“This lawsuit is a desperate effort to pursue funds where none are owed,” said Jane Street in a written statement. 

Jane Street is privately held and its stock doesn’t trade on a public exchange.