Jane Street, the quantitative trading powerhouse and authorized participant in spot Bitcoin ETFs, has resumed active crypto trading.
According to data tracked by Lookonchain, wallets linked to the firm saw an inflow of 205 Bitcoin, worth about $15 million, from institutional exchanges BitMEX and LMAX Digital on Monday.
Jane Street’s fresh on-chain activity comes as the firm faces accusations over its role in the May 2022 collapse of TerraUSD (UST) and LUNA that wiped out about $40 billion in value.
Todd Snyder, Terraform Labs’ bankruptcy plan administrator, is suing the Wall Street giant for alleged front-running using non-public insider information. Snyder also filed a $4 billion claim against Jump Trading.
Alongside the legal action, a widely circulated theory on X accused Jane Street of systematically influencing Bitcoin price movements.
Crypto traders pointed to a pattern in which Bitcoin frequently dropped around 10:00 a.m. ET, shortly after the US market opened, for months leading into early 2026.
Jane Street is suspected of having leveraged its role as an authorized participant for BlackRock’s iShares Bitcoin Trust ETF to sell Bitcoin, trigger liquidations, and then accumulate ETF shares at lower prices.
Observers later noted that the sell-off pattern appeared to stop in late February 2026, about a few days after the Terraform lawsuit became public.
However, several analysts and market veterans dismissed the allegations that Jane Street manipulated Bitcoin prices.
Rob Hadick, partner at Dragonfly Capital, said the claims show a fundamental misunderstanding of derivatives markets and the role of ETF authorized participants.
A person close to Jane Street also told Fortune in late February that the claims were an “absolutely ridiculous” conspiracy theory.
Source: https://cryptobriefing.com/jane-street-bitcoin-trading-institutions/
