{"id":73700,"date":"2026-02-24T10:47:08","date_gmt":"2026-02-24T10:47:08","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=73700"},"modified":"2026-02-24T10:47:08","modified_gmt":"2026-02-24T10:47:08","slug":"terraform-labs-has-sued-jane-street-for-insider-trading-before-terra-collapse","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=73700","title":{"rendered":"Terraform Labs Has Sued Jane Street for Insider Trading Before Terra Collapse"},"content":{"rendered":"<div>\n<p>The Luna drama just added a new chapter: Terraform Labs\u2019 liquidation administrator has officially sued prominent trading firm Jane Street, accusing it of insider trading that accelerated the catastrophic Terra collapse.<\/p>\n<p>Filed within the bankruptcy proceedings, the lawsuit alleges Jane Street used non-public information to front-run the market, profiting massively while the ecosystem imploded.<\/p>\n<p>This $40 billion crash didn\u2019t just kill a token: it triggered a contagion that wiped out savings for thousands of investors. Now, creditors are looking for someone other than founder Do Kwon to pay the bill.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">[ ZOOMER ]\n<\/p>\n<p>TERRAFORM LABS SUES JANE STREET FOR FURTHERING COLLAPSE OF LUNA , USED INSIDER INFORMATION TO. WITHDRAW FUNDS AHEAD OF CRASH: WSJ<\/p>\n<p>\u2014 zoomer (@zoomerfied) <a href=\"https:\/\/twitter.com\/zoomerfied\/status\/2026077270452900273?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">February 23, 2026<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2026<\/span><\/a><\/strong><\/p>\n<h2>Terraform Labs Has Sued Jane Street: Rigging the Game<\/h2>\n<p>The core allegation is simple: Jane Street allegedly cheated. The complaint claims the firm used a former Terraform Labs employee to get secret information about upcoming liquidity changes.<\/p>\n<p>On May 7, 2022, Terraform Labs withdrew $150 million worth of UST (their stablecoin) to adjust liquidity. The lawsuit claims Jane Street knew this was coming and sold off approximately $85 million in UST just minutes before the move became public knowledge.<\/p>\n<p>This massive sell pressure helped push UST off its $1.00 peg, triggering the death spiral that erased $40 billion from the market. While insider trading accusations are flying, this mirrors other recent crackdowns, such as when <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/bitcoin-btc\/israelis-arrested-insider-trading-polymarket\/\" target=\"_blank\" rel=\"noopener\">five suspects were arrested for insider trading on Polymarket<\/a>.<\/p>\n<figure id=\"attachment_337329\" aria-describedby=\"caption-attachment-337329\" style=\"width: 2560px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-337329\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-scaled.png\" alt=\"LUNA Price \" width=\"2560\" height=\"1811\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-scaled.png 2560w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-300x212.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-1024x724.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-768x543.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-1536x1087.png 1536w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-2048x1449.png 2048w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2026\/02\/IMG_1567-50x35.png 50w\" sizes=\"(max-width: 2560px) 100vw, 2560px\"><figcaption id=\"caption-attachment-337329\" class=\"wp-caption-text\">Luna Price Source:\u00a0<a class=\"general-link\" href=\"https:\/\/www.tradingview.com\/x\/K3afTbbt\" target=\"_blank\" rel=\"noopener nofollow\">TradingView<\/a><\/figcaption><\/figure>\n<p><strong>DISCOVER:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-binance-listings\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">16+ New and Upcoming Binance Listings in 2026<\/a><\/strong><\/p>\n<h2>Did Wall Street Exploit Crypto\u2019s Structural Flaws?<\/h2>\n<p>This isn\u2019t your typical story of a shady offshore crypto exchange doing bad things. Jane Street is Wall Street royalty.<\/p>\n<p>They are a massive quantitative trading firm and a market maker. Accusing Jane Street of rigging a market is a massive escalation. It suggests that the \u201csmart money\u201d institutional players were not just participating in crypto. They were allegedly exploiting structural weaknesses to extract profit at the expense of retail holders.<\/p>\n<p>This isn\u2019t the first time the firm has faced scrutiny. We have previously covered allegations regarding <a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/news\/bitcoin-btc\/jane-street-bitcoin-manipulation-10am-dump\/\" target=\"_blank\" rel=\"noopener\">Jane Street\u2019s Bitcoin manipulation tactics<\/a>, where aggressive selling strategies were questioned.<\/p>\n<p>Jane Street has reportedly disputed the claim, arguing that the collapse was caused by the \u201cmultibillion-dollar fraud\u201d of Terraform\u2019s own management, specifically Do Kwon, rather than their trading activity. They intend to defend themselves vigorously.<\/p>\n<p><strong>DISCOVER: <\/strong><strong><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-binance-listings\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">16+ New and Upcoming Binance Listings in\u00a0<\/a><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-100x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">2026<\/a><\/strong><\/p>\n<h2>ZachXBT Mentions a Major Investigation Dropping Soon: Just A Coincidence?<\/h2>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">NEW: Major investigation dropping February 26 on one of crypto\u2019s most profitable businesses where multiple employees abused internal data to insider trade over a prolonged period of time. <a href=\"https:\/\/t.co\/Losou2CZ2N\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/Losou2CZ2N<\/a><\/p>\n<p>\u2014 ZachXBT (@zachxbt) <a href=\"https:\/\/twitter.com\/zachxbt\/status\/2025917891678523644?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">February 23, 2026<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Prominent blockchain sleuth ZachXBT announced on X that he\u2019s set to release a major investigation on February 26, 2026. The probe targets \u201cone of crypto\u2019s most profitable businesses,\u201d where several employees allegedly misused internal data for insider trading over an extended time.<\/p>\n<p>This teaser comes just a day after news broke of a lawsuit filed by Terraform Labs\u2019 bankruptcy administrator against trading giant Jane Street.<\/p>\n<p>The timing raises eyebrows: ZachXBT\u2019s reveal follows hot on the heels of the lawsuit publicity. Could they be linked? Jane Street fits the bill as a highly profitable crypto player, and the insider trading allegations mirror ZachXBT\u2019s description. While no direct confirmation exists, the coincidence suggests his report might delve into or expand on these claims, potentially uncovering more evidence of wrongdoing in the Terra debacle.<\/p>\n<p>This is going to be a heavyweight legal battle. Jane Street has endless resources and will likely file a motion to dismiss, arguing that their trades were legitimate market strategies, not insider abuse.<\/p>\n<p>We are also watching to see if this triggers action from federal regulators. If a court decides a major US trading firm helped crash Terra, the SEC might look closer at other institutional trades from the 2022 contagion.<\/p>\n<p>For now, the focus remains on the courtroom. Do Kwon is already facing prison time, but the hunt for the rest of the missing billions is far from over.<\/p>\n<p><strong>Follow 99Bitcoins on <a href=\"https:\/\/twitter.com\/99BitcoinsHQ\" target=\"_blank\" rel=\"noopener nofollow\">X<\/a> For the Latest Market Updates and Subscribe on <a href=\"https:\/\/www.youtube.com\/channel\/UCFp2qXyD6Y7p1F9G2x5G2xQ\" target=\"_blank\" rel=\"noopener nofollow\">YouTube<\/a> For Daily Expert Market Analysis.<\/strong><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/terraform-labs-has-sued-jane-street-insider-trading\/\">Terraform Labs Has Sued Jane Street for Insider Trading Before Terra Collapse<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Luna drama just added a new chapter: Terraform Labs\u2019 liquidation administrator has officially sued prominent trading firm Jane Street, accusing it of insider trading that accelerated the catastrophic Terra collapse. Filed within the bankruptcy proceedings, the lawsuit alleges Jane Street used non-public information to front-run the market, profiting massively while the ecosystem imploded. This [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-73700","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/73700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=73700"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/73700\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=73700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=73700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=73700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}