Jane Street moves to dismiss Terraform Labs lawsuit

Jane Street seeks dismissal of Terraform Labs’ lawsuit, arguing the claims are baseless and that responsibility for the Terra-Luna collapse lies with Terraform and its founder. Jane Street denies insider trading.

Jane Street has filed motions in the U.S. District Court for the Southern District of New York, seeking to dismiss the insider trading and market manipulation lawsuit initiated by Terraform Labs. The trading firm contends that the lawsuit is a meritless effort by Terraform’s bankruptcy estate to deflect blame and recover funds after the collapse of the Terra-Luna ecosystem. Jane Street maintains that the responsibility for the collapse and associated fraud rests solely with Terraform and its founder, Do Kwon, who has pleaded guilty to conspiracy and wire fraud charges and is currently serving a 15-year sentence. The firm emphasizes that the fraudulent scheme has already been prosecuted and adjudicated. Jane Street asserts that its trades were legitimate and based solely on public information. The firm requests the case be dismissed with prejudice, which would prevent similar future claims. The outcome of this motion is considered significant for the ongoing legal fallout from the 2022 algorithmic stablecoin collapse.