Trading firm Jane Street has asked a US court to dismiss an insider trading lawsuit filed by the administrator of Terraform Labs over the 2022 Terra ecosystem collapse.
The motion, filed in Manhattan federal court, argues the lawsuit is an attempt to recover losses tied to Terraform’s own misconduct rather than any wrongdoing by Jane Street.
Jane Street said the causes of Terra’s collapse had already been litigated and resolved, pointing to prior legal action against Terraform’s founder Do Kwon.
“Terraform now claims it was victimised by Jane Street’s trading,”
The firm said in its filing, adding that Terraform’s fraud scheme “has already been prosecuted, adjudicated, and punished.”
Terraform’s administrator Todd Snyder alleges Jane Street traded Terra tokens using nonpublic information from insiders before the collapse that wiped out roughly $40 billion in market value, and following the announcement Jane Street is a private firm with no listed share price.
Jane Street countered that its trades occurred as market conditions visibly deteriorated, arguing that key information cited in the complaint was already public at the time of its transactions.
The firm has requested the case be dismissed with prejudice, which would prevent Terraform from refiling the same claims, as legal fallout from the TerraUSD and LUNA collapse continues to play out.