Simply Bitcoin Wall St Firm Accused of CAUSING 2022 Bitcoin Crash!! EP 1447
Feb 25, 2026
A new lawsuit claims a major Wall Street firm used insider info to accelerate the 2022 crypto crash. The show traces alleged links between trading desks, Terra/Luna withdrawals, and liquidity-hunting tactics. It also examines institutional Bitcoin adoption, ETF authorizations, and how paper markets may shift narratives around digital gold.
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Allegation That Jane Street Front-Ran Terra Withdrawals
- Jane Street is accused of using non-public TerraForm information to front-run withdrawals and dump TerraUSD, accelerating the May 2022 de-peg.
- The suit alleges a former Terra intern at Jane Street channeled confidential moves like the $150M Curve withdrawal and then sold $85M within hours, triggering cascade selling.
Backchannel Chat From Intern Allegedly Supplied Material Info
- The lawsuit traces communications: Bryce Pratt, a former Terraform intern, maintained a group chat and email introductions between Terraform staff and Jane Street DeFi leaders.
- Pratt's 'Bryce's Secret' group allegedly became a backchannel for material non-public information used to time trades around liquidity moves in Curve pools.
Timing And Incentives Behind The 2026 Lawsuit
- Host outlines incentives: Terraform may sue now to deflect blame or recoup losses while Jane Street calls it fabrication and a money grab.
- Timing of suit (2026) raises questions about reputational and financial motives from both sides amid broader scrutiny of market makers.