TL;DR of the Terraform labs drama

Terraform Labs (company behind TerraUSD $UST and $LUNA) just sued Jane Street (Quant fund) in Manhattan federal court (filed Feb 23/24, 2026).
They claim Jane Street:
-Used non-public / insider information from Terraform insiders
-Had back-channel communications through a former Terraform intern (Bryce Pratt), who later joined Jane Street
-Front-ran major liquidity moves before the UST collapse
One key example:
Terraform quietly removed ~$150M of liquidity from Curve’s 3pool.
Minutes later, a Jane Street-linked wallet withdrew ~85M UST from the same pool.
The lawsuit claims Jane Street positioned reacted with non public information just hours before the full UST death spiral.
Terraform argues this behavior accelerated the collapse of UST and Luna
What are they being charged with?
The suit alleges: Insider trading, Market manipulation, Securities and commodities law violations, Fraud
damages and disgorgement of profits.
Jane Street’s response:
Jane Street has called the lawsuit “desperate” and “a transparent attempt to extract money.”