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, denying claims that it contributed to the 2022 collapse of the TerraUSD stablecoin and Luna token. In its filing, Jane Street argues that the lawsuit is an attempt to deflect responsibility for the Terra ecosystem's collapse, which wiped out approximately $40 billion in value. The company is urging the court to reject the complaint, citing that the core issues surrounding Terra's downfall have already been settled in previous court cases, including those against Terraform founder Do Kwon. Terraform's lawsuit, filed in January, alleges that Jane Street engaged in insider trading, using non-public information to trade ahead of major market moves. However, Jane Street disputes these claims, maintaining that it had no involvement in Terraform's fraud scheme and that the lawsuit is an attempt to extract funds to compensate for Terraform's own misconduct.