Jane Street Seeks Dismissal of Terraform Lawsuit Over UST-LUNA Collapse

Jane Street has petitioned 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 assert that the case is an attempt to deflect responsibility for the Terra ecosystem's failure, which wiped out approximately $40 billion in value. The firm is seeking to have the complaint dismissed with prejudice, preventing Terraform from pursuing the same claims in the future. Jane Street maintains that the lawsuit is an attempt to hold it liable for a fraud perpetrated by Terraform, and that the core issues surrounding the collapse have already been resolved in court, including criminal and civil cases against Terraform founder Do Kwon. Terraform's lawsuit, filed in January, alleges that Jane Street engaged in insider trading, using confidential information to trade ahead of significant market moves. However, Jane Street denies any involvement in the collapse, stating that Terraform's fraud scheme has already been prosecuted and punished. The outcome of Jane Street's motion could have significant implications for the assignment of responsibility for the collapse of the Terra ecosystem, which had far-reaching consequences for the crypto sector.