Trading firm Jane Street has filed an official objection in the Manhattan District Court regarding the lawsuit brought by the administrator of the bankrupt Terraform Labs.

In the motion, the company seeks the complete dismissal of the claims, calling them an attempt to lure money to cover losses from fraud committed by Terraform Labs. The defense emphasizes that the allegations of insider trading are baseless, and that the collapse of the ecosystem was the result of internal dealings by the project—dealings that have already been investigated.

In February, Todd Snyder, the administrator of Terraform Labs, filed a lawsuit against Jane Street, the specialist Robert Gurnieri, and the employees Bryce Pratt and Michael Huang. They were accused of token transactions based on confidential information from insiders. In response, Jane Street said that the trading was conducted solely on market signals. In May 2022, when the TerraUSD stablecoin lost its peg to the dollar and the LUNA token fell in value, investors, fearing a collapse, decided to sell off their cryptocurrencies.

The total damage from Terra’s bankruptcy amounted to $40 billion. Jane Street’s lawyers note that the project’s founder, Do Kwon, has already been found guilty of fraud and sentenced to 15 years in prison. The company calls the lawsuit self-destructive, pointing to facts. The largest sale of TerraUSD by Jane Street took place 10 minutes after the relevant information had already become public. This shows that the company was responding to objective news rather than to insider information.

In addition, the lawsuit cites not a single specific source of leaked data. All allegations are based only on assumptions. Jane Street’s representatives ask the court to dismiss the case without the right to refile.

This process is important for thousands of investors who lost their funds, as it will determine responsibility for trading decisions amid market chaos.