Jane Street was sued by the manager of Terraform for alleged insider trading.

Jane Street Group LLC is being sued by the liquidator of Terraform Labs for alleged insider trading. The 2022 Terraform collapse event resulted in investors losing $40 billion, shaking up the cryptocurrency market and ultimately leading to the collapse of FTX. The liquidator appointed by the bankruptcy court, Todd Snyder, stated in a redacted complaint filed in Manhattan federal court on Monday that Jane Street used "non-public information for front-running trades, accelerating Terraform's collapse." The abuse of information allowed Jane Street to "timely unwind potential risk exposure of hundreds of millions of dollars" hours before the Terraform ecosystem collapse. A Jane Street spokesperson said in a statement that the lawsuit is a "desperate" and "clear attempt to extort money." When Terraform's stablecoin TerraUSD lost its peg to the US dollar, the Terraform ecosystem collapsed, leading to the collapse of its sister token Luna. This triggered a chain reaction in the cryptocurrency industry, ultimately causing the collapse of Sam Bankman-Fried's FTX exchange. Jane Street's spokesperson stated that the company will "vigorously refute these baseless, speculative allegations."