Jane Street keeps Bitcoin trading amid lawsuit

Jane Street Capital has continued actively trading Bitcoin despite facing an insider trading lawsuit linked to the collapse of Terraform Labs.

On-chain data shows the firm received 205.36 Bitcoin worth about $15.08 million on March 16, with activity remaining consistent in recent weeks despite the legal dispute.

The lawsuit, filed by the Terraform Labs bankruptcy administrator, alleges Jane Street engaged in insider trading and contributed to the firm’s collapse, claims the firm has called “baseless, opportunistic.”

The case stems from the 2022 failure of Terraform Labs, whose TerraUSD and LUNA tokens erased roughly $40 billion in value and led to a Chapter 11 bankruptcy filing in January 2024.

Market speculation has also focused on a so-called “10 AM dump” pattern, where Bitcoin allegedly faces selling pressure at the start of US trading hours, though analysts say such activity reflects standard delta-neutral strategies rather than manipulation, and following the developments Bitcoin price was up 3.5% at $74,215.

Jane Street remains a key liquidity provider for several US spot Bitcoin exchange-traded funds, working with major issuers including BlackRock, Fidelity and ARK 21Shares.

Analysts have pushed back on claims of coordinated selling, noting that simultaneous spot buying and futures selling is a common arbitrage strategy used across institutional crypto trading desks.

At the time of reporting, Bitcoin price was $74,406.57.