This Thursday, Jane Street filed a motion in the U.S. District Court for the Southern District of New York to dismiss the lawsuit filed by Terraform Labs. In the filing, the firm describes the legal action as a “meritless” attempt by the Terraform estate to evade responsibility and extract funds following the collapse of the Terra-Luna ecosystem. Jane Street’s argument is that the responsibility for the fraud lies exclusively with Terraform and its founder, Do Kwon.
Jane Street’s legal team maintains that the fraudulent scheme has already been adjudicated, noting that a jury found Terraform civilly liable and that Do Kwon is currently serving a 15-year sentence. Regarding the allegations of market manipulation, the firm asserts that its trades were legitimate and conducted based on public information, emphasizing that Terraform has failed to identify any internal communications or non-public data suggesting insider trading.
The outcome of this motion will be crucial in determining whether the proceedings continue or are definitively closed under the Wagoner Rule, which prevents a bankrupt entity from recovering losses resulting from its own fraud. The market is closely watching this case, which represents one of the final legal echoes of the algorithmic stablecoin collapse in 2022.
Source:https://goo.su/hLuOIkv
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