An insider group may have been behind one of the biggest collapses in crypto
Its name was reportedly “Bryce’s Secret.”
On February 23, 2026, Todd Snyder, the bankruptcy administrator of Terraform Labs, filed a federal lawsuit in Manhattan against Jane Street Group.
At the center of the complaint is Bryce Pratt.
Bryce was a former Terraform intern who later joined Jane Street in September 2021.
According to the lawsuit, in February 2022 he created a private group chat connecting Jane Street traders with key Terraform employees
The purpose was simple:
access to operational information before it became public.
- Liquidity movements.
- UST withdrawals.
- Internal strategy.
The critical date was May 7, 2022.
At 5:44 PM ET, Terraform withdrew $150 million worth of UST from the Curve 3pool.
It was not publicly announced.
About ten minutes later, a wallet allegedly linked to Jane Street executed an $85 million UST swap in the same pool.
The lawsuit describes it as the largest single transaction in that pool at the time.
Within days, UST lost its peg.
Luna collapsed more than 99.9%.
$40 billion in value disappeared.
The complaint claims Jane Street avoided more than $200 million in losses by acting on non-public information shared through “Bryce’s Secret.”
On May 9, as UST traded near $0.80, Bryce allegedly suggested Jane Street could buy Luna or Bitcoin at a deep discount.
Jane Street has denied all allegations.
But if the claims are proven
“Bryce’s Secret” would be the insider channel that sat at the center of a $40 billion collapse.