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

Jane Street has filed a motion with a US court to dismiss a lawsuit brought by Terraform Labs' bankruptcy estate, arguing that the claims against it are unfounded and an attempt to shift responsibility for the 2022 collapse of the TerraUSD stablecoin and its sister token Luna. In its filing, Jane Street asserts that the lawsuit rehashes events that have already been settled in court and that the company had no involvement in Terraform's alleged fraud scheme. The firm is urging the court to dismiss the complaint with prejudice, which would bar Terraform from pursuing the same claims in the future. Jane Street's motion comes in response to a lawsuit filed in January by Terraform administrator Todd Snyder, which accuses the company of insider trading and alleges that it used nonpublic information to trade ahead of major market moves, contributing to the collapse of the Terra ecosystem.