Terraform Administrator Alleges Jane Street Used Secret Telegram to Dump $192M UST Before Collapse

Terraform Labs administrator Todd Snyder alleged Monday in an amended complaint that Jane Street traders used a private Telegram chat to obtain insider information from Terraform employees before selling the firm's entire $192 million UST position hours before the stablecoin's May 2022 collapse.

According to the filing, the chat, named "Bryce's Secret" after Jane Street systems developer Bryce Pratt (a former Terraform intern), was created in February 2022 and involved current and former Terraform employees sharing confidential information. On May 7, 2022, Jane Street unstaked and sold its full UST position at dollar peg before UST began collapsing, the complaint states. Jane Street allegedly then shorted UST and Luna after learning details of a confidential rescue effort, making over $134 million across the trades. Jane Street denied the allegations, stating losses resulted from "multi-billion dollar fraud perpetrated by the management of Terraform Labs."