Newly unsealed federal court filings made public on May 20, 2026, allege that Jane Street Group used a private Telegram group called "Bryce's Secret" to receive non-public information from Terraform's inner circle before UST collapsed in May 2022 — and that the firm used that access to exit $192 million in UST near par before the de-peg, then bet against Terra as the $40 billion project imploded.
The amended complaint, filed last week in Manhattan federal court by Terraform's bankruptcy estate with reduced redactions, names Jane Street co-founder Robert Granieri and trader Michael Huang as participants in the group. According to the estate, the channel gave Jane Street advance visibility into Terraform's internal thinking at a moment when retail holders had no such access.
The Telegram group
The complaint describes "Bryce's Secret" as a small, private chat that connected Jane Street personnel directly with Terraform insiders. The estate alleges it functioned as an informal intelligence feed: Terraform's team communicated with Jane Street traders about the state of UST and the Terra project in ways that were not publicly disclosed. Who "Bryce" refers to is not named in the publicly available portions of the filing.
The core allegation is that material, non-public information flowing through this channel allowed Jane Street to assess UST's fragility well before the general market did.
The May 7 exit and the nine-minute window
The timeline the complaint lays out is specific. On May 7, 2022, Jane Street allegedly sold its entire UST position — roughly 193 million tokens — near par, before the de-peg gathered momentum.
The most pointed detail concerns a single $85 million UST sale on Curve Finance. Per the complaint, that trade came nine minutes after Terraform quietly withdrew $150 million of liquidity from the same Curve pool — an event not announced publicly at the time. The liquidity withdrawal has long been identified in Terra postmortems as the trade that destabilized UST's peg; the amended complaint now attributes the wallet behind the $85 million follow-on sale directly to Jane Street.
If accurate, the sequence turns a suspected coincidence into an alleged act: Jane Street knew the liquidity was coming out because, the estate claims, it had a channel into Terraform. The nine-minute gap between Terraform's withdrawal and Jane Street's sale is the evidentiary centrepiece of the updated filing.
The short
The complaint alleges Jane Street did not simply exit. After selling its UST holdings near par, the firm allegedly built a short position against Terra. As Luna's price collapsed from roughly $80 to near zero and UST lost its peg entirely in the days that followed, the estate alleges that short generated approximately $134 million in profits.
The overall picture the estate draws: Jane Street exited $192 million in UST with minimal losses, then made $134 million shorting the collapse it allegedly had foreknowledge of — both legs enabled, per the complaint, by access through "Bryce's Secret."
'Decommission the wallets'
Among the internal communications cited by the estate are messages that allegedly show Jane Street personnel discussing whether to "decommission" the wallets associated with the trades. The complaint presents this as evidence of awareness of legal exposure — that someone inside Jane Street understood these wallets could attract scrutiny.
The estate does not allege the wallets were destroyed or that evidence was concealed. The messages are characterised as showing knowledge of risk, not successful cover-up.
Jane Street's response
Jane Street has denied the allegations in full. The firm called the estate's claims "desperate" and "baseless." In April 2026, Jane Street filed a motion to dismiss the case. The firm's position is that it traded lawfully, that no insider relationship with Terraform existed, and that the complaint's characterisation of its trades misrepresents what happened.
The motion to dismiss is pending. No trial date has been set.
Legal footing
The lawsuit was originally filed in February 2026. The estate is pursuing claims under federal securities law and the Commodity Exchange Act.
The federal securities law counts got a significant boost from a 2023 ruling that UST and Luna qualified as securities under U.S. law — a determination made in the separate criminal case against Terraform co-founder Do Kwon. That precedent means the estate can pursue the securities fraud theory without relitigating whether the underlying instruments were covered by federal law.
The Commodity Exchange Act counts add a parallel track. Taken together, the dual statutory basis gives the estate more surface area to survive a motion to dismiss than it would have had before the 2023 securities ruling.
Context
Terra's collapse in May 2022 erased roughly $40 billion in market value within days and triggered a broader crypto credit crisis that took down several downstream firms. The mechanism of the de-peg — specifically, whether a coordinated or informed actor precipitated the initial Curve liquidity withdrawal — has been debated since the week it happened.
This amended complaint is the first time a court filing has attributed a wallet to a named firm in connection with that sequence. The allegation remains contested. Jane Street's motion to dismiss will test whether the estate's evidence clears the threshold required to proceed to discovery.
The filing became public on May 20, 2026. The underlying complaint was amended and filed last week with fewer redactions than earlier versions; the detail about "Bryce's Secret" and the nine-minute Curve trade sequence was not in prior public versions.