Jane Street Seeks Dismissal of Lawsuit Over UST-LUNA Collapse

Jane Street has requested a US court to dismiss a lawsuit filed by Terraform Labs' bankruptcy estate, arguing that the claims against the trading firm are an attempt to deflect responsibility for the 2022 collapse of the TerraUSD stablecoin and its sister token, Luna. In court filings, Jane Street stated that the lawsuit reiterates events that have already been resolved in court and seeks damages for losses caused by Terraform's own internal wrongdoing. The firm argued that the core issues surrounding Terra's collapse have been settled in previous court cases, including those against Terraform founder Do Kwon, who has been convicted of conspiracy and wire fraud. Jane Street maintained that it had no involvement in Terraform's fraudulent activities and denies any role in the collapse of the Terra ecosystem, which resulted in the loss of approximately $40 billion in value. The lawsuit, filed by Terraform administrator Todd Snyder, alleges that Jane Street engaged in insider trading using nonpublic information from Terraform insiders, which the company disputes. A court decision on Jane Street's motion could have significant implications for how responsibility for the collapse is assigned.