Jane Street Seeks Dismissal of Lawsuit Linked to UST-LUNA Collapse

Jane Street has requested a US court to reject a lawsuit filed by the bankruptcy estate of Terraform Labs, arguing that the claims of triggering the 2022 collapse of TerraUSD and Luna are unfounded. In court filings, Jane Street and its employees stated that the lawsuit is an attempt to deflect responsibility for the Terra ecosystem's failure, which wiped out approximately $40 billion in value. The firm has asked the court to dismiss the complaint with prejudice, preventing Terraform from pursuing the same claims in the future. According to Jane Street, the case is an attempt to hold the company liable for a fraud perpetrated by Terraform itself. The firm pointed to previous court cases against Terraform founder Do Kwon, who pleaded guilty to conspiracy and wire fraud and is currently serving a 15-year prison sentence. Jane Street argued that Kwon's admission of guilt and the court's ruling on securities fraud have already settled the core issues surrounding Terra's collapse. The lawsuit, filed by Terraform administrator Todd Snyder, alleges that Jane Street engaged in insider trading, using nonpublic information to trade ahead of major moves and accelerate the collapse. However, Jane Street disputes this narrative, denying any involvement in the collapse and maintaining that Terraform's fraud scheme has already been prosecuted and punished. The company's motion to dismiss the lawsuit could have significant implications for how responsibility for the collapse is assigned, with potential repercussions for the crypto sector.