Dem don accuse Jane Street for private Telegram channel before UST crash

One newly unseal file for Terraform Labs bankruptcy dey claim say Jane Street use private Telegram backchannel (“Bryce’s Secret”) with former Terraform intern Bryce Pratt before the May 2022 collapse of TerraUSD (UST). The administrator talk say the alleged nonpublic information allow “front-running” and help unwind large UST exposure hours before UST comot from dollar peg. The suit still point to market plumbing: after Terraform allegedly withdraw about $150M in UST from Curve 3pool on May 7, 2022, Curve reportedly see one biggest single swap of about $85M within 10 minutes, wey trigger heavy UST sell pressure (the filer no name who do the swap). On Feb 23, Todd Snyder sue Jane Street, co-founder Robert Granieri, and staff Bryce Pratt and Michael Huang for misappropriating confidential information and manipulating market prices. Jane Street deny any wrongdoing and dey ask make the case dismiss, sey Terraform dey try make them pay for fraud by Terraform management. For traders, these renewed allegations fit raise risk of tighter enforcement and higher legal/regulatory costs around UST/legacy Terra exposure, and e put liquidity-pool flows and peg-stability mechanics back for focus. For short term, this fit mean more caution and wider risk premiums for UST-sensitive positions.