Jane Street Files Motion to Dismiss Terraform Labs' Legal Claims
The quantitative trading firm Jane Street has formally requested a federal court in New York to dismiss a lawsuit filed against it by Terraform Labs. The suit alleges Jane Street engaged in insider trading and market manipulation, contributing to the collapse of the UST/LUNA algorithmic stablecoin ecosystem.
Jane Street's Argument: A Baseless Attempt to Shift Blame
In its court filing, Jane Street contends that Terraform Labs' lawsuit is "entirely without merit." The firm argues the case represents an effort by Terraform's bankruptcy estate to deflect responsibility for the multibillion-dollar ecosystem failure onto an unrelated third party.
Requesting Dismissal 'With Prejudice' to Bar Future Actions
Jane Street is not merely seeking dismissal; it has asked the court to dismiss the case "with prejudice." This legal term means that if granted, Terraform Labs would be permanently barred from bringing the same claims against Jane Street again. This move underscores Jane Street's firm stance that the allegations should have no legal recourse.
Highlighting Separate Resolution of Terraform's Fraud
Jane Street further points out that the fraudulent conduct associated with Terraform—including securities fraud—has already been addressed, adjudicated, and penalized in separate legal proceedings. Founder Do Kwon has pleaded guilty and is serving a sentence, and Terraform itself has been found liable. Jane Street asserts it was not involved in these adjudicated wrongful acts.
- Jane Street accuses Terraform of attempting to evade responsibility for its own collapse.
- Files for dismissal with prejudice to permanently end the suit.
- Notes that Terraform's fraud was resolved in other cases.
- States the firm did not participate in the misconduct established by the courts.