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 contributed to the 2022 collapse of TerraUSD and Luna. The firm argues that the lawsuit is an attempt to shift responsibility 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 Terra's collapse have already been settled in court, citing cases against Terraform founder Do Kwon, who pleaded guilty to conspiracy and wire fraud. The firm denies any wrongdoing and maintains that Terraform's fraud scheme, which it had no involvement in, has already been prosecuted and punished. Terraform's lawsuit, filed in January, accuses Jane Street of insider trading that accelerated the collapse. The court's decision on Jane Street's motion could impact how responsibility for the collapse is assigned.