Jane Street Seeks Dismissal of Lawsuit Tied to TerraUSD and Luna Collapse

Jane Street has filed a motion with a US court to dismiss a lawsuit brought by the bankruptcy estate of Terraform Labs, refuting claims that the trading firm played a role in the 2022 collapse of the TerraUSD stablecoin and its sister token, Luna. The firm contends that the lawsuit is an attempt to deflect responsibility for the failure of the Terra ecosystem, which resulted in the loss of approximately $40 billion in value over several days. In its filing, Jane Street asserts that the core issues surrounding Terra's collapse have already been resolved in court, citing cases against Terraform founder Do Kwon, who has been convicted of conspiracy and wire fraud. The firm argues that the lawsuit, which alleges insider trading, is without merit and seeks to shift blame for Terraform's own misconduct. Jane Street maintains that it had no involvement in Terraform's fraudulent activities, which have already been prosecuted and punished, and urges the court to dismiss the complaint with prejudice to prevent further action on the same claims.