Overview
- Terraform Labs’ bankruptcy administrator filed an 83-page complaint on Feb. 23 alleging Jane Street used insider information and traded around the 2022 TerraUSD collapse, including a May 7 sequence tied to an $85 million UST sale, which the firm denies as baseless.
- Viral posts on X claim Jane Street ran a daily 10 a.m. ET sell program and suggest the pattern vanished this week as bitcoin jumped roughly 6%–7% to near $68,000–$70,000, though those assertions remain unverified.
- Reporters and data analysts say no on-chain or exchange records link the firm to a coordinated bitcoin sell-off, and research from economist Alex Krüger finds the supposed 10 a.m. pattern is noisy and broadly tracks Nasdaq moves.
- Market-structure experts note that authorized-participant mechanics in spot bitcoin ETFs—including in-kind creation and Reg SHO carve-outs—can create early U.S. session volatility without constituting manipulation, a point some traders dispute.
- Veteran market voices quoted by Fortune dismiss the manipulation theory as unfounded, CoinDesk notes India’s SEBI previously sanctioned Jane Street in an unrelated case, and the U.S. lawsuit now proceeds toward discovery that could surface trading logs; a separate social-media claim about a Trump Media letter seeking a probe remains unconfirmed.