Jane Street: The allegations against Terraform Labs are a desperate and unprincipled attempt to extract funds

SmartContractAuditor · 2026-02-25T05:26:14+00:00

Jane Street responds to the lawsuit filed by Terraform Labs' bankruptcy trustee, claiming that the lawsuit is a transparent attempt to extract funds and denying the allegations of insider trading, stating that the losses stem from fraud by Terraform Labs' management.

SmartContractAuditor

2026-02-25 05:26:14

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Odaily Planet Daily reports that in response to the bankruptcy trustee of Terraform Labs’ lawsuit, Jane Street stated that the lawsuit is a transparent fund extraction scheme. Jane Street said that the losses suffered by Terra and Luna holders were caused by billions of dollars in fraud carried out by Terraform Labs management.

Previously, Terraform Labs’ bankruptcy trustee sued Jane Street, accusing it of using insider information to trade in advance, accelerating the collapse of TerraUSD and Luna in 2022. The lawsuit states that within 10 minutes of Terraform Labs withdrawing 150 million UST from Curve3pool, a wallet associated with Jane Street also withdrew 85 million UST from the pool, triggering market panic. Jane Street denied these allegations, calling them baseless speculative actions.

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