Terraform Labs bankruptcy administrator sues Jane Street, accusing it of profiting from insider information

Techub News reported, according to The Wall Street Journal, the bankruptcy administrator of Terraform Labs sued Jane Street in a New York federal court, accusing it of using non-public information provided by Terra insiders to conduct front-running trades and profit during the collapse of Terra. The lawsuit shows that Jane Street established a secret channel with Terraform Labs internal employees through former intern Bryce Pratt to obtain confidential information, and within 10 minutes after Terraform Labs withdrew 150 million TerraUSD from the Curve pool on May 7, 2022, it preemptively withdrew 85 million TerraUSD for front-running trades.