Jane Street Seeks Dismissal of Terraform Labs Lawsuit

Quantitative trading firm Jane Street has filed a motion to dismiss the insider trading and market manipulation lawsuit brought against it by Terraform Labs. According to Odaily, Terraform Labs accused Jane Street of contributing to the collapse of the UST/LUNA algorithmic stablecoin. In documents submitted to the federal court in the Southern District of New York, Jane Street described the lawsuit as "baseless," suggesting that it is an attempt by Terraform's bankrupt estate to shift the blame for the multi-billion dollar ecosystem collapse onto third parties. The company has requested the court to dismiss the case "with prejudice," meaning the plaintiff would be barred from filing another lawsuit on the same grounds. Jane Street further emphasized that Terraform's fraudulent activities have already been prosecuted, adjudicated, and penalized, asserting that it was not involved in these actions. Do Kwon, the former CEO of Terraform Labs, has previously pleaded guilty to conspiracy and wire fraud charges and is currently serving a 15-year sentence. A jury has also found Terraform and Kwon guilty of securities fraud.