Jane Street Denies Allegations from Terraform Labs' Liquidators

KuCoinFlash

Release Time: 02/25/2026 05:32:15

Summary

Jane Street has dismissed recent legal claims by Terraform Labs’ liquidators as an attempt to recover funds. The firm attributes the losses of Terra and Luna to deceptive conduct by Terraform’s team. The liquidators previously alleged that Jane Street exploited non-public data to execute trades that exacerbated the 2022 collapse of TerraUSD and Luna. A linked wallet is said to have withdrawn 85 million UST from Curve3pool shortly after Terraform’s withdrawal of 150 million UST, raising concerns about liquidity and crypto markets. Jane Street called the accusations unfounded and unrelated to CFT measures.

Odaily Planet Daily reports: In response to the lawsuit filed by the Terraform Labs bankruptcy administrator, Jane Street stated that the lawsuit is a transparent attempt to extract funds. Jane Street said that the losses suffered by Terra and Luna holders were caused by a billion-dollar fraud orchestrated by Terraform Labs’ management.

Previously, the bankruptcy administrator of Terraform Labs sued Jane Street, alleging that it used insider information to engage in pre-market trading, accelerating the collapse of TerraUSD and Luna in 2022. The lawsuit claimed that within 10 minutes after Terraform Labs withdrew 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 speculation.

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