Jane Street Seeks Dismissal of Lawsuit Over UST-LUNA Collapse

Jane Street has filed a motion to dismiss a lawsuit brought by Terraform Labs' bankruptcy estate, arguing that the claims of triggering the 2022 collapse of TerraUSD and Luna are unfounded. In its filing, Jane Street asserts that the lawsuit is a attempt to shift responsibility for the $40 billion loss in value of the Terra ecosystem. The firm argues that the core issues behind the collapse have already been settled in court, citing cases against Terraform founder Do Kwon, who has been found guilty of conspiracy and wire fraud. Jane Street denies any involvement in the collapse, stating that Terraform's own fraud scheme has already been prosecuted and punished. The lawsuit, filed in January, alleges that Jane Street engaged in insider trading using nonpublic information from Terraform insiders, which the company disputes. A decision on Jane Street's motion could have significant implications for the assignment of responsibility for the collapse of the Terra ecosystem, which had a ripple effect on the crypto sector.