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

Jane Street has filed a motion to dismiss a lawsuit brought by the bankruptcy estate of Terraform Labs, arguing that the claims of triggering the 2022 collapse of TerraUSD (UST) and Luna are without merit. In the filing, Jane Street asserts that the lawsuit is an attempt to deflect responsibility for the failure of the Terra ecosystem, which resulted in the loss of approximately $40 billion in value. The firm argues 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. Jane Street denies any involvement in the collapse and maintains that Terraform's fraud scheme has already been prosecuted and punished. The lawsuit, filed by Terraform administrator Todd Snyder, alleges that Jane Street engaged in insider trading using nonpublic information from Terraform insiders, which sped up the collapse. However, Jane Street disputes this narrative and denies any role in the collapse, urging the court to dismiss the complaint with prejudice to prevent Terraform from pursuing the same claims again.