A major quant trading firm now finds itself at the center of one of cryptoโs most talked-about legal battles.
A U.S. bankruptcy administrator has filed a civil lawsuit against Jane Street, alleging the firm used non-public info to trade ahead of the 2022 TerraUSD/Luna collapse, accelerating losses for other investors.
The complaint claims Jane Street had advance insights via a private communication channel involving ex-Terraform employees and placed large trades before critical Terra liquidity moves were made public.
Jane Street strongly denies these allegations, stating the suit is an opportunistic attempt to extract money and that losses stemmed from Terraformโs own alleged fraud.
This comes amid prior scrutiny of Jane Streetโs trading conduct in other markets, including a regulatory action in India.
This lawsuit could influence how regulators and courts treat insider trading and market access in crypto, especially for institutional players tied to legacy finance.
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