Terraform admin blames Jane Street alleged insider trading for collapse

CoinTelegraph

by Jesse Coghlan

February 24, 2026

AI-Generated Deep Dive Summary

Terraform Labs' court-appointed administrator, Todd Snyder, has filed a lawsuit against the trading firm Jane Street, alleging insider trading that accelerated the collapse of the multibillion-dollar Terra ecosystem. The complaint, filed in Manhattan federal court on Monday, accuses Jane Street and its employees Bryce Pratt and Michael Huang, as well as co-founder Robert Granieri, of misappropriating confidential information and manipulating market prices. Snyder claims that Jane Street used connections with "Terraform insiders" to gain material non-public information about the company's financial state, which they then exploited by selling tokens tied to the Terra blockchain. This allegedly worsened the collapse of the Terra network, which included the depegging of its UST stablecoin and the subsequent loss of billions in market value. The collapse of Terraform Labs, one of crypto's most high-profile failures, has sent shockwaves through the industry. The company's founder, Do Kwon, is now facing multiple legal proceedings, including extradition requests from South Korea. The lawsuit against Jane Street adds another layer to the ongoing investigation into the causes and contributing factors of the Terra ecosystem's demise. Snyder's complaint highlights the interconnected nature of crypto markets and the potential for insider trading to exacerbate crises in this fast-paced industry. The allegations against Jane Street are significant because they suggest that certain players may have profited from non-public information during a time of extreme market volatility. If proven, this case could set a precedent for how insider trading is addressed in the cryptocurrency space, which has historically been less regulated than traditional financial markets. The lawsuit also underscores the importance of transparency and accountability in crypto, particularly as the industry continues to mature and attract greater scrutiny from regulators. For readers interested in crypto, this matter highlights the risks associated with insider trading and the potential for such actions to impact market stability. It also raises questions about the role of intermediaries like Jane Street in facilitating transactions based on confidential information. As the legal proceedings unfold, the outcome could have implications not only for Terraform Labs' stakeholders but also for how similar cases are handled in the future. In summary, Todd Snyder's lawsuit against Jane Street marks another chapter in the ongoing saga of the Terra collapse. The allegations not only shed light on potential misconduct by a major trading firm but also highlight broader issues within the crypto industry, such as regulation, market integrity, and the need for greater accountability.

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Originally published on CoinTelegraph on 2/24/2026