Terraform just tried to blame Jane Street for the $40 billion LUNA collapse.
Jane Street's response was five words.
"Do Kwon admitted he was responsible."
Case dismissed. Morally if not yet legally.
Here's the full story behind one of crypto's most audacious legal pivots.
Terraform Labs the company behind the catastrophic UST/LUNA implosion that wiped out $40 billion in 72 hours filed a lawsuit accusing Jane Street of insider trading and market manipulation.
The argument: Jane Street's trades caused the collapse.
Jane Street's counter: Our largest trades happened AFTER the information about UST's health was already public.
Translation: We didn't create the crisis. We read it. Then traded it.
That's not manipulation. That's a market doing what markets do.
But here's the line that ends the lawsuit before it begins.
Do Kwon Terraform's own founder already stood in a courtroom and admitted he alone was responsible for the collapse.
Not Jane Street. Not short sellers. Not market makers.
Him.
Terraform is now asking a federal court to ignore that conviction and redistribute the blame to a counterparty who traded on public information.
This is what the end of a fraud looks like.
Not accountability. Deflection.
The algorithm failed. The founder admitted it. The victims lost everything.
And the company's final legal move is to point at someone else.
Jane Street didn't collapse LUNA.
A broken peg, a flawed design, and a founder who "alone was responsible" did.
The court already has that on the record.