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

Jane Street has requested a US court to reject a lawsuit filed by Terraform Labs' bankruptcy estate, disputing claims that the firm contributed to the 2022 collapse of TerraUSD and Luna. In a Thursday filing, Jane Street argued that the lawsuit rehashes previously settled events and seeks damages for losses resulting from Terraform's own misconduct. The firm urged the court to dismiss the complaint, citing prior court cases against Terraform founder Do Kwon, who pleaded guilty to conspiracy and wire fraud. Jane Street maintains that Terraform's fraud scheme has already been prosecuted and punished, and that the firm had no involvement in the collapse. Terraform's lawsuit, filed in January, accuses Jane Street of insider trading that accelerated the collapse, but Jane Street denies these allegations, stating that the narrative is false and that the firm played no role in the downfall.