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A filing Thursday said the suit rehashes events already settled successful tribunal and seeks damages for losses caused by interior misconduct.
Apr 24, 2026, 3:53 p.m.
Jane Street asked a U.S. tribunal to disregard a suit brought by the bankruptcy property of Terraform Labs, rejecting claims that the trading steadfast helped trigger the 2022 illness of the TerraUSD (UST) stablecoin and its sister token Luna.
In 2 filings submitted Thursday to the Southern District of New York, Jane Street and respective employees said the lawsuit is an effort to displacement blasted for the nonaccomplishment of the Terra ecosystem, which erased astir $40 cardinal successful worth wrong days.
The steadfast urged the tribunal to disregard the ailment with prejudice, which would forestall Terraform from pursuing the aforesaid claims again.
“This lawsuit is an effort by the property of Terraform Labs to extract currency from Jane Street to ft the measure for a fraud that Terraform itself perpetrated connected the market,” the defendants wrote.
Jane Street argued that the halfway issues down Terra’s illness person already been settled successful court. It pointed to transgression and civilian cases against Terraform laminitis Do Kwon, who pleaded blameworthy to conspiracy and ligament fraud and is serving a 15-year situation sentence. A assemblage besides recovered Kwon and Terraform liable for securities fraud. According to the filing, Kwon said helium was “alone liable for everyone’s pain.”
Terraform’s lawsuit, filed successful January by head Todd Snyder, accuses Jane Street of insider trading that sped up the collapse. Snyder alleges the steadfast utilized nonpublic accusation from Terraform insiders to commercialized up of large moves, including ample withdrawals from the Curve liquidity excavation that preceded UST losing its dollar peg.
For example, the ailment claims Terraform withdrew 150 cardinal UST connected May 7, 2022, and that a wallet linked to Jane Street pulled 85 cardinal UST minutes later, sparking marketplace panic. Jane Street disputes that communicative and denies immoderate relation successful the collapse.
Jane Street maintains that “Terraform’s fraud strategy — successful which Jane Street had nary engagement — has already been prosecuted, adjudicated, and punished.”
Terraform Labs, founded successful 2018, filed for bankruptcy successful January 2024. Its downfall rippled crossed the crypto sector, contributing to failures astatine respective firms exposed to the project. The court’s determination connected Jane Street’s question could signifier however work for that illness is assigned.
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