Jane Street moves to kill Terraform's bankruptcy lawsuit, calls it blame-shifting over the $40B UST-LUNA collapse!

Jane Street filed two motions Thursday in the Southern District of New York asking a federal judge to dismiss Terraform Labs' bankruptcy lawsuit with prejudice — a ruling that would permanently bar the estate from re-filing the same claims. The firm's core argument: the fraud behind Terra's 2022 collapse has already been prosecuted, adjudicated, and punished through criminal and civil cases against founder Do Kwon, who pleaded guilty to conspiracy and wire fraud and is serving a 15-year prison sentence.

Terraform's bankruptcy administrator Todd Snyder alleges Jane Street used nonpublic information from Terraform insiders to front-run major UST moves. The complaint points to a specific sequence on May 7, 2022: Terraform withdrew 150 million UST from the Curve liquidity pool, and a wallet linked to Jane Street pulled 85 million UST minutes later — a chain the estate says helped trigger…