Terraform Labs Sues Jane Street for Alleged Insider Trading in $40 Billion Crypto Collapse

New York, Thursday, 26 February 2026.
A federal lawsuit filed Monday alleges Jane Street used insider secrets from a former intern to front-run the 2022 Terra collapse. The complaint claims the trading giant withdrew $85 million in TerraUSD just ten minutes after Terraform’s own internal moves, reportedly avoiding $200 million in losses while accelerating a $40 billion market wipeout. This legal battle brings intense scrutiny to institutional hedging strategies amidst Bitcoin’s current volatility.