Overview
- Jane Street filed the motion Friday in the Southern District of New York, seeking dismissal with prejudice of the February suit brought by Terraform’s court‑appointed administrator, Todd Snyder.
- Terraform’s estate alleges the firm traded TerraUSD using nonpublic tips tied to May 7, 2022 Curve pool shifts, pointing to a 150 million UST withdrawal by Terraform followed minutes later by 85 million from a wallet it links to Jane Street.
- Jane Street denies using inside information, saying its largest TerraUSD sale came about 10 minutes after the data was visible on-chain and that pre-suit discovery found no specific back-channel communication.
- The filing leans on the Wagoner rule to argue a debtor that committed fraud cannot sue third parties for its own losses, while also questioning whether the disputed trades occurred in the United States.
- Do Kwon has already pleaded guilty and is serving a 15-year sentence, a point Jane Street says shows Terraform’s fraud caused the losses as the court now weighs whether the case proceeds.