So many of the biggest fraudsters in crypto came from tradfi and their scams were discovered because they picked the one asset class where being unable to process withdrawals implies a 100% chance of fraud. It makes you wonder how much fraud occurs in tradfi but it goes undiscovered because nobody can self-custody their paper metals or paper stocks.

The claim of artificial price inflation with Jump sounds more questionable but TFA doesn’t seem to put it front and centre

I thought the whole idea of crypto is that everything is public on the blockchain. Presumably anyone could have seen the $150m withdrawal and reacted? It doesn't seem very insider information.

If there is one benefit coming from crypto is that it explains clearly why finance is a regulated industry.

https://twitter.com/FatManTerra

https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-...

"I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at Time 0 you give them an extremely gameable system that can produce billions of dollars of profit, at Time 10 your system is going to be a smoking wreckage and they are going to have billions of dollars of profit. That’s their whole job, you know? I couldn’t tell you in advance what all the intermediate steps will be, and in fact in hindsight I cannot tell you what the intermediate steps actually were, how Jump and Jane Street made money off the collapse of Terra. But as a heuristic, I mean, come on. Terra was like “hello we have a balloon full of money, here is a pin, dooooooon’t pop the balloon.” Guess what!"

https://en.wikipedia.org/wiki/Terra_(blockchain)

> The Anchor Protocol was a lending and borrowing protocol built on the Terra chain. Investors who deposited UST in the Anchor Protocol were receiving a 19.45% yield paid out from Terra's reserves.

What the fuck?

The company in charge of a crypto thing made a sudden (and I assume unexpected) withdraw of $150 million.

Jane Street, who worked with them, dumped $80 million within 10 minutes.

Are we supposed to think Jane Street wasn’t supposed to be monitoring what was going on? If I was working with a bunch of crypto people who suddenly took out a ton of money without warning me, I can absolutely see wanting to pull my money before everything collapses. Crypto is volatile.

As other people pointed out, this is 10 MINUTES. You don’t need secret information to notice something happening that fast. You need dial-up. That would be plenty fast enough.

Sure if you can actually produce records where someone from TerraLabs said “we are running away, pull out quick“ fine. But even then… if they waited most of 10 minutes did they even need that information? It’s not like rug pulls are an unknown thing in crypto.

I get the lawyer wants to help his clients but unless he gets some discovery and finds something pretty damning I’m not sure there’s anything here. I was expecting to see one of those allegations where they did it within like two seconds. I can see two seconds being collusion.