A private Telegram group called “Bryce’s Secret” is now at the center of a federal lawsuit that accuses one of Wall Street’s most powerful trading firms of profiting from the inside while the Terra ecosystem burned to the ground.
Terraform Labs’ estate, acting through a court-appointed administrator, has filed suit against Jane Street in Manhattan federal court. The core allegation: Jane Street used non-public information shared in that private chat to sell roughly $192 million worth of TerraUSD (UST) just before the algorithmic stablecoin lost its peg and spiraled into one of crypto’s most catastrophic collapses in May 2022.
The alleged playbook
According to the lawsuit, Jane Street employees participated in a private Telegram channel nicknamed “Bryce’s Secret,” where insider information about Terraform Labs circulated. Armed with that intelligence, the firm reportedly dumped approximately 193 million UST right before the stablecoin’s death spiral began.
The complaint alleges Jane Street simultaneously shorted Terra tokens while the ecosystem was collapsing, a strategy that reportedly generated around $134 million in profits.
