Todd Snyder, the court-appointed executive overseeing the liquidation of Terraform Labs, has filed a new lawsuit related to one of the biggest cryptocurrency crashes in history. Snyder accuses Jane Street, a leading quantitative trading firm on Wall Street, of using insider information to trade before the TerraUSD (UST) crisis and accelerating the crash. The lawsuit was filed on February 23, 2026, in the Southern District of New York Federal Court. The complaint names Jane Street Group LLC, its co-founder Robert Granieri, and employees Bryce Pratt and Michael Huang as defendants. According to Snyder, Jane Street used non-public information obtained from within Terraform Labs to "front-run" and avoided massive losses by closing hundreds of millions of dollars worth of positions at the most critical moment.
A $85 million move in 10 minutes
At the heart of the lawsuit is a remarkable transaction that took place on May 7, 2022. According to the allegations, Terraform Labs withdrew 150 million UST from the Curve 3pool at 5:44 PM. This transaction was not publicly announced. The complaint claims that just 10 minutes later, a wallet allegedly linked to Jane Street withdrew another 85 million UST from the same pool. Liquidation manager Snyder argues that this timing was not a coincidence. The complaint alleges that Jane Street communicated with Terraform employees through an internal chat channel called "Bryce's Secret" and obtained insider information through this channel. It is claimed that, thanks to this information, Jane Street liquidated risky positions just before the UST stable was lost.
On-chain analysis was also included in the lawsuit. Citing previous work by Wintermute researcher Igor Igamberdiev, it is suggested that the wallet known as "Wallet A," which converted 85 million UST to USDC and disrupted the balance in the Curve pool, may be linked to Jane Street. The filing also details that a large portion of the USDC in question was transferred to a Coinbase wallet shortly afterward.
Jane Street's strong response
Jane Street categorically denies the accusations. A company spokesperson described the lawsuit as "opportunistic" and "desperate." The company argues that the losses suffered by Terra-Luna investors are based on a "multi-billion-dollar fraud" perpetrated by Terraform management, and stated that it will strongly defend itself against the allegations.
Terraform Labs collapsed in May 2022 when its algorithmic stablecoin, TerraUSD, lost its dollar peg. The decline in UST's value, along with its sister token LUNA, entered a death spiral, wiping out approximately $40 billion in market capitalization within a week. This collapse triggered a chain reaction leading to the bankruptcy of major players such as Three Arrows Capital and Voyager Digital; the crisis deepened further in the following months with the collapse of FTX. Terraform filed for bankruptcy in 2024 and reached a $4.47 billion settlement with the U.S. Securities and Exchange Commission (SEC). Founder Do Kwon pleaded guilty to two charges in August 2024; he was sentenced to 15 years in prison in December 2025.
Jump Trading detail
The Jane Street case is not the first major lawsuit filed by Snyder. In a separate lawsuit filed in Chicago in December 2025, Jump Trading was also targeted with similar accusations. In that case, Jump is alleged to have colluded to support the UST constant and manipulated the market. Snyder demanded $4 billion in damages from Jump.
Jump Trading's name is mentioned again in the latest lawsuit. Snyder alleges that some non-public information may have been transferred from Jump to Jane Street. On May 9, 2022, when the UST had fallen to levels around 35 cents, it was also alleged that Bryce Pratt initiated a group message with Do Kwon and Jane Street representatives regarding a bid for Luna or Bitcoin. While the liquidation process continues, it is stated that Snyder has so far raised approximately $300 million for creditors.
