Manhattan federal prosecutors have allegedly slid into the DMs of employees at Jane Street and Jump Trading to determine if market manipulation occurred in the collapse of Terra’s stablecoin, Bloomberg reports.
According to an unnamed source familiar with the matter, Telegram messages by Jane Street and Jump are being combed in relation to a potential bailout of TerraUSD in May, which never took place. Instead, the entire Terra ecosystem collapsed.
The two trading firms hold significant sway in the markets. US authorities believe their ties to Terra’s collapse run deep. Several Jane Street traders went on to work in top roles at crypto exchange FTX and trading firm Alameda Research before they collapsed in November — including Sam Bankman-Fried himself.
There’s no evidence that Jane Street had any involvement in the misdeeds former employees committed at FTX. However, it’s likely that Jane Street did have a heavy hand in the collapse of Terra’s stablecoin, TerraUSD.