Terraform Labs bankruptcy trustee sues Jane Street, accusing it of front-running trades using insider information

According to the WSJ, the court-appointed bankruptcy administrator of Terraform Labs has sued Jane Street in federal court in New York, accusing it of engaging in front-running trades using non-public insider information provided by Terra insiders during the collapse of Terra and profiting from it.

The complaint states that shortly after Terraform Labs withdrew 150 million TerraUSD (UST) from the Curve liquidity pool, a wallet address associated with Jane Street also withdrew 85 million UST from the same pool, with a series of operations that illegally profited and accelerated the demise of Terraform Labs.