Court Filings Detail Telegram Group in Jane Street Terra Trading Case

Newly unsealed filings in Manhattan federal court describe a private Telegram channel that Terraform's bankruptcy estate says gave Jane Street Group nonpublic information about TerraUSD before its May 2022 collapse. ' According to the estate, Jane Street sold its entire UST position of roughly 193 million tokens on May 7, 2022, including an $85 million sale on Curve Finance nine minutes after Terraform withdrew $150 million from the same pool.

The estate says Jane Street then built short positions that generated about $134 million as Terra's $40 billion ecosystem unraveled. ' After a crypto analytics firm later told a Jane Street contact the firm had 'made a killing,' internal communications show traders discussing how to 'decommission' identified wallets.

The suit names Jane Street co-founder Robert Granieri and trader Michael Huang. It alleges violations of federal securities laws and the Commodity Exchange Act and seeks disgorgement of profits for Terraform's creditors. A 2023 federal court ruling found that UST and Luna qualify as securities, which the complaint cites to support its legal footing.

Jane Street denied the allegations as 'baseless' and stated it will defend itself vigorously. On May 18, 2022, five days after UST hit bottom, Jane Street offered Terraform's head of research a job, the complaint says.