Terra's $40 Billion Crypto Collapse: Lawsuit Alleges Insider Trading by Jane Street
ByAinvest
Friday, Feb 27, 2026 2:59 am ET1min read
LUNA--
A federal lawsuit alleges that quantitative trading firm Jane Street exploited insider information to accelerate Terra's UST stablecoin collapse, fueling a $40 billion market crash. The lawsuit claims Jane Street obtained confidential details of Terraform's emergency measures via employees and used this information to trigger UST's depegging and LUNA's hyperinflation. Jane Street denies the allegations, calling the lawsuit a "desperate attempt" to extract money.
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