Jane Street Accused of Profiting from Early UST Sell-off and Shorting Using Inside Information

On May 20, according to CoinDesk, US market maker Jane Street Group has been sued by Terraform Labs' bankruptcy administrator, who alleges that the company obtained non-public information about UST before its de-pegging through a private Telegram group called "Bryce's Secret," operated by a former Terraform intern while employed at Jane Street. Jane Street is accused of selling approximately 193 million UST before the UST collapse, including an 85 million UST sale on Curve, and subsequently establishing short positions, resulting in a total profit of about $134 million. The lawsuit also names Jane Street co-founder Robert Granieri and trader Michael Huang as defendants, accusing them of violating federal securities laws and the Commodity Exchange Act, and seeks to recover related profits to compensate Terraform creditors.