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

Jane Street has filed a motion to dismiss a lawsuit brought by the Terraform Labs bankruptcy estate, arguing that it is an attempt to shift responsibility for the 2022 collapse of the TerraUSD stablecoin and Luna token, which wiped out approximately $40 billion in value. The firm claims that the lawsuit rehashes events that have already been resolved in court and seeks damages for losses caused by internal misconduct at Terraform. In its filing, Jane Street asserts that the case is an effort to extract money to compensate for a fraud perpetrated by Terraform itself. The company points to previous court cases against Terraform founder Do Kwon, who has been found liable for securities fraud and is serving a prison sentence. Jane Street argues that Kwon has taken responsibility for the collapse, stating he was 'alone responsible for everyone's pain.' 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 denies. Jane Street maintains that Terraform's fraud scheme has already been prosecuted and punished, and that it had no involvement in the scheme. The court's decision on Jane Street's motion could have significant implications for the assignment of responsibility for the Terra ecosystem's collapse, which had far-reaching effects on the crypto sector.