Terraform Labs liquidator Todd R. Snyder filed a lawsuit back in February against trading firm Jane Street, accusing it of using insider data ahead of the UST collapse. On April 23, Jane Street moved to dismiss the case entirely, rejecting all allegations of insider trading and market manipulation.
Jane Street's Position
Jane Street fired back, calling the lawsuit an attempt to pin the blame for Terraform Labs' own fraud on the firm. The company is pushing to dismiss the case with prejudice — meaning it cannot be refiled.
In its defense, Jane Street argues that the plaintiff failed to present concrete evidence that the firm held insider information or breached any obligations. A separate argument focuses on jurisdiction: the administrator did not prove the disputed trades took place in the United States, meaning the claims fall outside American legal bounds.
Terraform's Position
According to the plaintiff, Jane Street employees Bryce Pratt and Michael Huang obtained non-public data from a former Terraform Labs intern. The firm then opened short positions on UST right before the depeg. The administrator claims these trades accelerated the collapse of the Terra ecosystem, which cost investors roughly $40B.
Snyder is seeking damages and the return of alleged illegal profits to benefit Terraform's creditors. Judge Dale Ho is hearing the case in the Southern District of New York.
If the court grants the motion, the case will close before a trial on the merits even begins. Otherwise, Terraform will continue trying to prove that one of Wall Street's largest market makers helped bring down UST and LUNA.
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