CoinDesk reported that Jane Street, a global quantitative trading and market-making firm, is suspected of obtaining insider information through a private Telegram chat room with a Terraform Labs insider and selling approximately $192 million worth of UST just before Terra's collapse. The media outlet stated, "In a complaint filed in Manhattan federal court, Terraform Labs' bankruptcy trustee alleged that Jane Street had already understood Terra's internal situation before its collapse through a Telegram chat room called 'Bryce's Secret'." Bryce Pratt, then an employee of Jane Street, was a former intern at Terraform Labs and is known to have provided information to Jane Street through his network of insiders. Based on this, Jane Street is said to have sold off all of its approximately 193 million UST holdings just before the collapse on May 7, 2022. It also included that Jane Street sold $85 million worth of UST just nine minutes after Terraform Labs withdrew $150 million in liquidity from the Curve Finance (CRV) pool. The bankruptcy trustee also alleged that Jane Street subsequently profited approximately $134 million through short positions,' the report explained. Jane Street rebutted the lawsuit, stating, 'The losses suffered by Terra and Luna investors stemmed from a multi-billion dollar fraud perpetrated by Terraform Labs' management,' and added, 'We will vigorously defend against these baseless allegations.'
