The legal fallout from the 2022 Terra-Luna crash, which erased over $40 billion in market value, continues to expand. Liquidation trustee Todd Snyder has filed a lawsuit against Wall Street trading giant Jane Street, accusing the firm of using non-public information obtained from within Terraform Labs to gain an advantage during a critical period. Jane Street has denied the claims, stating that the collapse resulted from internal mismanagement and fraud.
Court documents focus on transactions dated May 7, 2022. According to the complaint, Terraform Labs withdrew 150 million TerraUSD from Curve3pool without prior public disclosure. Approximately ten minutes later, a wallet allegedly linked to Jane Street withdrew an additional 85 million TerraUSD from the same pool. The trustee argues that the timing suggests possible use of insider information.
Snyder had previously filed a $4 billion lawsuit against Jump Trading over similar allegations. Following TerraUSD’s depegging, Terraform Labs collapsed and filed for bankruptcy in 2024, later reaching a $4.47 billion settlement with U.S. regulators. The latest lawsuit highlights that the Terra crisis remains not only a financial collapse but also an ongoing and complex legal battle.
