The administrator overseeing the bankruptcy of Terraform Labs has launched a lawsuit against trading firm Jane Street, alleging that the firm used confidential information to trade ahead of the collapse of the Terra ecosystem. The complaint, filed in Manhattan federal court, claims the trading activity intensified market stress as TerraUSD was losing its peg to the US dollar in May 2022. The case adds a new legal chapter to the fallout from one of the largest failures in crypto history. Terraform’s collapse erased about $40 billion in market value and triggered turmoil across digital asset markets.
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