The court-appointed administrator for Terraform Labs has launched a lawsuit against trading firm Jane Street, alleging it engaged in insider trading that exacerbated the decline of the Terra ecosystem. \n\nOn Monday, Todd Snyder, representing Terraform in federal court in Manhattan, accused Jane Street and its co-founder, Robert Granieri, along with employees Bryce Pratt and Michael Huang, of leveraging confidential information to manipulate market conditions. \n\nThe largely redacted legal document asserts that Jane Street exploited its insider connections to access crucial non-public details about Terraform and subsequently made trades that contributed to its downfall. \n\nIn a response to the allegations, Jane Street characterized the lawsuit as likely an effort to recover damages amidst the fallout from a significant fraud orchestrated by Terraform’s management. \n\nThe lawsuit claims that Jane Street profited by selling off vast amounts of TerraUSD shortly before a major market collapse that occurred in May 2022, thereby avoiding potential losses. \n\nSnyder is pursuing damages and further recovery actions against Jane Street in the upcoming jury trial.