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

Jane Street has filed a motion with a US court to dismiss a lawsuit brought by Terraform Labs' bankruptcy estate, which alleges the trading firm's actions contributed to the 2022 collapse of TerraUSD and Luna. The firm argues that the lawsuit is an attempt to deflect blame for the failure of the Terra ecosystem, which resulted in a $40 billion loss. In its filing, Jane Street claims that the core issues surrounding the collapse have already been resolved in court, citing criminal and civil cases against Terraform founder Do Kwon. The firm maintains that it had no involvement in Terraform's fraud scheme and that the lawsuit is an attempt to extract money to compensate for Terraform's own misconduct. Terraform's lawsuit, filed in January, accuses Jane Street of insider trading that accelerated the collapse, but the firm denies any wrongdoing and argues that the court should dismiss the complaint with prejudice to prevent further claims.