Jane Street asks court to dismiss Terra collapse lawsuit with prejudice

Jane Street is asking a U.S. court to dismiss a lawsuit accusing it of insider trading related to the TerraUSD collapse. The lawsuit alleges that Jane Street used non-public information to trade before UST lost its dollar peg in May 2022. Jane Street argues that trading decisions were based on public information and that the claims are an attempt to shift responsibility for the collapse. The lawsuit was filed by Terraform Labs’ bankruptcy estate and Jane Street is seeking a complete dismissal. The firm also argues that prior fraud rulings against Terraform and Do Kwon should be considered in the case.