Terra (blockchain) Sues Jane Street for Insider Trading
Analysis based on 9 articles · First reported Feb 24, 2026 · Last updated Feb 24, 2026
The lawsuit against Jane Street for alleged insider trading during the Terra ecosystem collapse could increase regulatory scrutiny on high-frequency trading firms in the crypto space. It also highlights the ongoing legal repercussions of the $40 billion market crash, potentially affecting investor confidence in the broader cryptocurrency market.
Todd Snyder, the court-appointed administrator for Terra (blockchain), has filed a lawsuit against trading firm Jane Street, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang. The lawsuit, filed in a Manhattan federal court, accuses Jane Street of insider trading and market manipulation that allegedly worsened the collapse of the Terra ecosystem in May 2022. Snyder claims Jane Street used confidential, non-public information obtained through connections with Terraform insiders, particularly Bryce Pratt, a former Terraform intern, to sell off Terra (blockchain) tokens just hours before the ecosystem's collapse. A key allegation points to Jane Street's sale of 85 million Terra (blockchain) into a liquidity pool within 10 minutes of Terra (blockchain)' unannounced withdrawal of 150 million Terra (blockchain), triggering a fire sale. Jane Street has vehemently denied the allegations, calling them 'baseless, opportunistic claims' and attributing the collapse to 'multi-billion dollar fraud perpetrated by the management of Terra (blockchain).' This lawsuit follows Terra (blockchain)' bankruptcy filing and the sentencing of its co-founder, Do Kwon, to 15 years in prison for fraud charges related to the collapse of Terra (blockchain) and Terra (blockchain). Snyder is seeking damages, disgorgement, and interest from Jane Street.
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