A new development has occurred in the case of Terraform Labs, which is currently undergoing bankruptcy and liquidation proceedings.
Todd Snyder, liquidator of Terraform Labs, filed a new lawsuit against Jane Street, one of the leading U.S. companies that has sued for according to Wall Street Journal (WSJ). S S. market leader, alleging that it was insider trading which helped accelerate the collapse of Terra-Luna.
The company Jump Trading, which Todd Snyder claims was a partner last year sued, helped spread secret information with Jane Street.
Snyder alleges that Jane Street used confidential information obtained from inside Terraform Labs to pre-order shares.
In one of the most important events in crypto history, Snyder said ‘Jane Street used market relations to manipulate the market into its advantage. ” , ‘I’m sure it is worth reading.
But just after Terraform Labs pulled $150 million UST from Curve Pool 3 on May 7, 2022, about $85 million was removed from a wallet identified as being associated with Jane Street, the lawsuit claims. Snyder argues that the timing of Jane Street withdrawal is important at this stage, as Terraform Labs’ withdrawal was before it was publicly revealed.
Therefore, it is alleged that this series of transactions led to illicit profits and accelerated the collapse of Terraform Labs.
Jane Street wrote ‘The losses of Terra and Luna investors are a result of massive fraud by Terraform management. Our firm defense will be strong against this opportunistic, baseless lawsuit against . The lawsuit is another legal action after a previous suit filed by the liquidator against Jump Trading. , ” and.
What Happened?
With the devaluation of the altcoin Luna (LUNA), a decline that began in May 2022 with Terraform Labs’ algorithmic stablecoine TerraUSD (UST) losing its dollar value continued.
In the end, FTX was bankrupted after an incident with chain reaction following the Terra collapse. The bankruptcy of Terraform Labs was finally filed in January 2024, and a liquidation fund was set up. Felon Founder Do Kwon admitted guilty and was sentenced to 15 years in prison for the crime.
*This is not investment advice.
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