Jane Street Lawsuit: Terraform Collapse and FTX Connections

Background: Terraform Collapse In 2022, Terraform Labs created TerraUSD, a stablecoin pegged to the U.S.
dollar.
The project collapsed unexpectedly, wiping out roughly $40 billion in market value and causing the Luna token to lose almost all its worth.
Founder Do Kwon pleaded guilty to fraud and received a 15‑year prison sentence.
Jane Street Lawsuit Jane Street Group has named co‑founder Robert Granieri, trader Michael Huang, and employee Bryce Pratt as defendants.
Court‑appointed manager Todd Snyder alleges the firm used non‑public information to gain a market advantage.
Jane Street denies the accusations and says it will defend itself.
FTX Connections The case has drawn attention to indirect links between Jane Street and FTX.
Former FTX CEO Sam Bankman‑Fried and ex‑executive Caroline Ellison previously worked at Jane Street.
While the lawsuit does not directly accuse FTX, it stresses that the Terraform debacle set the stage for FTX’s collapse.
Indian Manipulation Allegations India’s Securities and Exchange Board (SEBI) charged Jane Street with manipulating the Bank Nifty and Nifty indices from January 2023 to March 2025.
The firm allegedly earned about $565 million in illicit profits, prompting a temporary trading ban in Indian markets.
Implications These developments reignite debates over transparency and regulation in the cryptocurrency sector.
Jane Street’s defense and the lawsuit’s outcome may serve as a precedent for other market participants.