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Terra Trustee Sues Jane Street Over $192M UST Sale Ahead of Collapse NEW YORK — The bankruptcy trustee for Terraform Labs has sued global quantitative trading firm Jane Street in Manhattan federal court, alleging the firm used non-public information to dump roughly $192 million of UST hours before the algorithmic stablecoin lost its dollar peg in May 2022.
Per the filing, Jane Street liquidated approximately 193 million UST on May 7, 2022, then took a short position the trustee says generated about $134 million in profit.
The complaint claims the firm acted on insider knowledge that materially preceded the public unraveling of the Terra ecosystem.
The trustee said one trade of $85 million in UST was executed nine minutes after Terraform Labs withdrew $150 million in liquidity from a Curve Finance pool.
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