This post was originally published on Coinspeaker
Four years after the Luna meltdown, a new development is shedding light on the dramatic collapse of the multi-billion-dollar crypto project. Terraform Labs sues Jane Street, alleging insider trading and market manipulation during the 2022 TerraUSD collapse that erased $40 billion.
Filed by court-appointed administrator Todd Snyder, the complaint claims Jane Street shorted TerraUSD (UST) while aware of significant liquidity shifts, allegedly accelerating a collapse that wiped out more than $40 billion in market value.
The estate seeks to recover damages resulting from what it terms a coordinated strategy to exploit Terraform’s internal vulnerabilities. The lawsuit claims that Jane Street utilized access to confidential trading data to position itself ahead of the market, generating substantial profits while retail investors faced devastating losses throughout the depegging event.
[ ZOOMER ]
TERRAFORM LABS SUES JANE STREET FOR FURTHERING COLLAPSE OF LUNA , USED INSIDER INFORMATION TO. WITHDRAW FUNDS AHEAD OF CRASH: WSJ
— zoomer (@zoomerfied) February 23, 2026
DISCOVER: Best Solana Meme Coins By Market Cap 2026
Terraform Claims Market Rigging via Privileged Data
The core of the lawsuit focuses on specific transactions executed on the Curve Finance exchange in early May 2022. Administrator Todd Snyder alleges that Jane Street withdrew
— Read the rest of this post, which was originally published on Coinspeaker.
