Jane Street resumes Bitcoin trading amid scrutiny over alleged insider activity

Quantitative trading firm Jane Street, an authorized participant for spot Bitcoin ETFs, has resumed active crypto trading, receiving 205 Bitcoin worth approximately $15 million from institutional exchanges. This activity occurs while the firm faces serious accusations, including a lawsuit from Terraform Labs’ bankruptcy plan administrator, Todd Snyder, alleging front-running using non-public insider information related to the May 2022 TerraUSD (UST) and LUNA collapse. Furthermore, a circulating theory on X accused Jane Street of manipulating Bitcoin prices by systematically selling around 10:00 a.m. ET, leveraging its role with BlackRock’s ETF to trigger liquidations and buy shares cheaply. While the alleged selling pattern seemed to cease after the lawsuit became public in late February 2026, some analysts, like Rob Hadick of Dragonfly Capital, dismissed the manipulation claims as a misunderstanding of derivatives markets, and a source close to Jane Street called the theory "absolutely ridiculous."

(Source：Crypto Briefing)