Jane Street Seeks Dismissal of Terraform Lawsuit Over UST-LUNA Collapse

Jane Street has filed a motion to dismiss a lawsuit brought by the bankruptcy estate of Terraform Labs, arguing that the claims are an attempt to deflect responsibility for the 2022 collapse of the TerraUSD (UST) stablecoin and its sister token Luna. The lawsuit, filed in January, alleges that Jane Street engaged in insider trading that accelerated the collapse, but the company denies any wrongdoing. In its filing, Jane Street pointed to previous court cases against Terraform founder Do Kwon, who has been found liable for securities fraud and is serving a 15-year prison sentence. The company argues that Terraform's fraud scheme, which led to the collapse, has already been prosecuted and punished, and that it had no involvement in the scheme. The court's decision on the motion could have significant implications for the assignment of responsibility for the collapse, which had far-reaching consequences for the crypto sector.