Shocking Truth Behind the Jane Street Bitcoin Manipulation Scandal

How the Jane Street Bitcoin Manipulation Strategy Crashed Markets

The crypto world is currently shaking from shocking claims about a Jane Street Bitcoin manipulation plan. For a long time, traders thought the collapse of Terra (LUNA) and FTX were just cases of bad luck or poor management. However, new legal papers suggest something much more planned. A major lawsuit now says Jane Street used secret info to protect itself while regular investors lost everything.

Source: X(formerly Twitter)

Researchers have found a strange "10 AM daily dump" that wiped billions off Bitcoin’s value. This pattern only seemed to stop after legal actions started against the firm. Experts say that without this daily pressure, Bitcoin’s price might have been much higher. In just the last two days, the end of these dumps helped Bitcoin end a long losing streak and jump back to $68,000.

How the Jane Street Bitcoin Manipulation Strategy Crashed Markets

The plan used for this alleged interference was simple but very effective. By using huge amounts of cash, the company allegedly pushed prices up in the regular market. Then, they would dump their coins to make massive profits from "short" bets that the price would fall. This same type of strategy already led to a $580 million fine and a temporary ban in India for manipulating market indexes.

The Anthropic and FTX Connection

One of the most surprising parts of the Jane Street Bitcoin manipulation story is its link to the FTX collapse. In 2021, FTX bought an 8% stake in the AI startup Anthropic for $500 million. Since FTX founder Sam Bankman-Fried used to work at Jane Street, some believe the firm knew how weak his companies really were. By allegedly helping the Terra-Luna crash happen faster in 2022, the firm started a chain reaction that ended with FTX going bankrupt.

The final goal of this move became clear during the FTX bankruptcy. To pay back people who lost money, the FTX estate sold its Anthropic shares for billions. Jane Street was a top buyer, picking up nearly $100 million in shares. Those shares have since exploded in value, giving the firm a massive profit that was only possible because of the earlier market crash.

Regulatory Crackdown in Global Markets

This is not the first time the firm has faced these kinds of charges. In July 2025, the Securities and Exchange Board of India (SEBI) gave the firm a record-breaking fine of over ₹4,800 crore. SEBI found that the firm’s trading was so powerful on some days that it was the only thing moving the Bank Nifty index up while everyone else was selling. Right now, the firm has paid the full amount into a special account while it fights the legal decision.

Expert Analysis: Future Outlook

These new details are a huge moment for market fairness. As Bitcoin becomes a mainstream investment, people are demanding more rules for high-speed trading firms. If the Jane Street Bitcoin manipulation claims are proven true in court, it could change how big trading firms work with ETFs and exchanges forever. In the coming months, expect more investigations from groups like the SEC to protect everyday traders.

Your Money Your Life Disclaimer: Investing in crypto involves high risk and potential market manipulation. This news is based on current legal filings and research. Always talk to a financial expert before trading.