Jane Street Seeks Dismissal of Terraform Lawsuit Tied to UST-LUNA Collapse

Jane Street has requested a US court to dismiss 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 its filing, the company asserts that the case is an attempt to deflect blame for the failure of the Terra ecosystem, which resulted in the loss of approximately $40 billion in value. The firm is seeking a dismissal with prejudice, which would prevent Terraform from pursuing the same claims in the future. Jane Street contends that the core issues surrounding Terra's collapse have already been resolved in court, citing the criminal and civil cases against Terraform founder Do Kwon, who has been convicted of conspiracy and wire fraud. The company denies any involvement in Terraform's alleged fraud scheme and argues that it should not be held accountable for the collapse. Terraform's lawsuit, filed in January, accuses Jane Street of insider trading, alleging that the firm used confidential information to trade ahead of significant market moves. However, Jane Street disputes these claims, maintaining that it had no role in the collapse of TerraUSD and Luna.