Jane Street Seeks Dismissal of Terraform Lawsuit, Claims Attempt to Shift Liability

On April 24, quantitative trading firm Jane Street filed a motion to dismiss the insider trading and market manipulation lawsuit brought against it by Terraform Labs, which accuses Jane Street of causing the collapse of the UST/LUNA algorithmic stablecoin. In documents submitted to the U.S. District Court for the Southern District of New York, Jane Street stated that the lawsuit is “baseless” and is an attempt by Terraform’s bankruptcy estate to shift the responsibility for the billions of dollars in ecosystem collapse onto a third party. The company is requesting the court to dismiss the entire case “with prejudice,” meaning the plaintiff cannot bring the same claims again. Jane Street further pointed out that the fraudulent activities related to Terraform have already been litigated, adjudicated, and penalized, and that it was not involved in those actions. Do Kwon has previously pleaded guilty to conspiracy and telecommunications fraud charges and is currently serving a 15-year sentence, with a jury having found Terraform and himself liable for securities fraud.