Jane Street filed a motion to dismiss a lawsuit brought by Terraform Labs administrator Todd Snyder alleging the $45 billion trading firm used insider information to profit during the May 2022 Terra collapse that cost investors $40 billion. Snyder claims Jane Street employee Bryce Pratt, a former Terraform Labs intern, used a backchannel to obtain non-public information that enabled Jane Street to sell 85 million UST and open short positions worth substantial profits. Jane Street argues its largest UST sale occurred ten minutes after the information became publicly visible and that the lawsuit rehashes already-settled events. The case is part of broader litigation by Snyder against trading firms including Jump Trading, as Terraform Labs faces a $4.4 billion SEC fine and founder Do Kwon serves 15 years for fraud.
Jane Street's motion to dismiss insider trading allegations
- ▪Jane Street filed a motion to dismiss a lawsuit alleging insider trading during the Terra collapse in May 2022
- ▪Todd Snyder, the administrator overseeing Terraform Labs' winding down, filed a lawsuit against Jane Street in February 2025
- ▪Jane Street is a $45 billion high-frequency trading firm
Timing discrepancies in the alleged insider trading
- ▪Jane Street's single largest UST sale of 85 million UST occurred ten minutes after the supposed material non-public information was visible to the market
- ▪Jane Street opened short positions on UST and LUNA between May 8 and May 13, 2022
- ▪Todd Snyder alleged Jane Street sold off its UST on May 7, 2022 to maximize profits and avoid substantial losses
- ▪Bryce Pratt worked as an intern for Terraform Labs until September 2021
- ▪Jane Street sold 85 million UST on May 7, 2022 in response to the stablecoin's deteriorating peg
- ▪Jane Street began building its short position on UST and LUNA on May 8, 2022 before allegedly receiving insider information about a possible rescue package
Broader legal fallout from the Terra collapse
- ▪Jump Trading responded to Todd Snyder's lawsuit in March 2025, calling it a transparent attempt to dodge a $4.4 billion fine levied by the Securities and Exchange Commission in 2024
- ▪The Securities and Exchange Commission levied a $4.4 billion fine against Terraform Labs in 2024
- ▪Do Kwon, Terraform Labs' founder, serves a 15-year prison sentence for fraud
- ▪Terraform Labs' UST stablecoin lost its peg to the dollar and collapsed in May 2022
- ▪The Terra collapse cost investors approximately $40 billion
- ▪Todd Snyder filed a lawsuit against Jump Trading in December 2024 alleging the company played an outsized role in the collapse of Terra
Perspective of Jump Trading
- ▪Jump Trading called Todd Snyder's lawsuit a transparent attempt to dodge the $4.4 billion SEC fine against Terraform Labs
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