Trending Now - Jane Street Faces Allegations of Insider Trading Before Terra's Fall

WHO:

Bitcoinist - Terraform Labs has accused Jane Street, one of Wall Street’s largest trading firms, of insider trading.

WHAT:

Bitcoinist - Jane Street allegedly used a private Telegram group chat to dump its TerraUSD (UST) stablecoin holdings.

Cointelegraph - Jane Street is accused of unwinding hundreds of millions in potential exposure just hours before the collapse of the Terra ecosystem, which was valued at $40 billion.

WHERE:

Bitcoinist - The allegations involve a private Telegram group chat related to Terraform Labs.

WHEN:

Cointelegraph - The alleged actions took place just hours before the collapse of the Terra ecosystem.

WHY:

Bitcoinist - The motivation behind the alleged actions was to mitigate losses by selling off holdings before the collapse.

HOW:

Bitcoinist - Jane Street allegedly utilized a private Telegram backchannel to coordinate the sale of its holdings.

(UPDATED May 21, 2026 19:46 UTC)

Terraform Labs has accused Jane Street, one of Wall Street's largest trading firms, of insider trading related to the collapse of the Terra ecosystem. The firm allegedly used a private Telegram group chat to sell off its TerraUSD stablecoin holdings, unwinding hundreds of millions in potential exposure just hours before the ecosystem's downfall. This move was reportedly aimed at mitigating losses by coordinating the sale of their holdings through this backchannel.