Jane Street's Terra insider trading lawsuit takes another turn; it had previously been heavily fined by regulators in India.

Quantitative trading firm Jane Street was recently sued in the Southern District of New York federal court over the Terra ecosystem collapse, accused of using undisclosed information to avoid potential losses of over $200 million before the Terra/Luna crash in May 2022. The plaintiff alleges that it obtained crucial non-public information through communications with Terraform Labs' engineering and business teams and conducted large-scale transactions before the UST liquidity migration. Jane Street denies the allegations, calling the lawsuit "unfounded accusations." The complaint discloses that after Terraform withdrew 150 million UST from Curve3pool on May 7, 2022, related addresses quickly withdrew 85 million UST from the same pool, causing a liquidity imbalance. The Terra ecosystem subsequently collapsed within a week, wiping out approximately $40 billion in market capitalization. The report also points out that Jane Street had previously been subject to a 105-page enforcement filing by the Securities and Exchange Commission of India, accusing it of using structural advantages to obtain abnormal gains in the local market. The case currently involves 13 charges, including insider trading, securities fraud, and violations of the Commodity Exchange Act; some details remain sealed. (Forbes)