Market Commentators Call for Investigation Into Jane Street Over Alleged Bitcoin Price Suppression

Market commentators are calling for regulatory scrutiny of Jane Street Capital following allegations that the firm may have contributed to Bitcoin price suppression through derivatives positioning and ETF-related trading activity.

Among the most detailed claims comes from author Justin Bechler (#BIP-110), who published a thread outlining a thesis connecting a federal lawsuit tied to the 2022 Terra collapse, a recurring 10 a.m. Eastern sell-off pattern in Bitcoin during late 2024 and 2025, and Jane Street’s disclosed holdings in the iShares Bitcoin Trust (IBIT).

Bechler cites a lawsuit filed in Manhattan by Terraform Labs’ bankruptcy administrator Todd Snyder. 

The complaint alleges Jane Street used material nonpublic information obtained through a private chat group referred to as “Bryce’s Secret.” 

The suit centers on Bryce Pratt, a former intern at Terraform Labs who later joined Jane Street. 

According to the filing, Terraform withdrew $150 million in TerraUSD liquidity from Curve’s 3pool on May 7th, 2022, and within minutes a wallet allegedly linked to Jane Street withdrew $85 million before public disclosure. 

The complaint claims the liquidity shift contributed to TerraUSD losing its peg and the collapse of Luna, which erased roughly $40 billion in market value.

Jane Street has called the lawsuit baseless and argues the losses stemmed from Terraform’s own conduct. 

The case remains ongoing and no court has ruled that Jane Street engaged in wrongdoing.

Other accounts, including the financial blog ZeroHedge, wrote on X that Jane Street was “behind the 2022 crypto winter,” alleging the firm contributed to Terra’s de-pegging before absorbing the remaining value.

These claims reflect opinion and have not been substantiated by a court or regulator.

Separately, traders observed repeated Bitcoin sell-offs around 10 a.m. Eastern beginning in late 2024, coinciding with the U.S. stock market open. 

The moves often triggered leveraged liquidations before reversing later in the session. 

Jan Happel and Yann Allemann, co-founders of blockchain analytics firm Glassnode, documented the timing and consistency of the pattern through their Negentropic account.

The commentary account Whale Factor posted that Bitcoin had been “consistently dumping ~2–3% within minutes of the U.S. cash open almost every trading day since early November,” suggesting traders were pointing to Jane Street’s reported multi-billion-dollar IBIT position as a potential driver. 

Whale Factor characterized the activity as possible engineered liquidity sweeps to accumulate ETF exposure at discounted prices. These assertions remain speculative and unconfirmed by regulators.

Meanwhile, in its Form 13F filings, Jane Street disclosed acquiring additional shares of Strategy, bringing its total holdings to 951,187 shares, and reporting 20,315,780 shares of the IBIT. 

Because 13F reports disclose only long equity positions and not options, futures, or swaps, the filings do not reveal the firm’s net Bitcoin exposure.

As one of four authorized participants for IBIT, Jane Street can create and redeem ETF shares in kind, facilitating arbitrage between ETF pricing and underlying Bitcoin. 

Critics argue that if ETF inventory is offset by undisclosed derivatives, public filings may not reflect true directional exposure.

Commentators have also pointed to the firm’s leadership and history. Rob Granieri, one of Jane Street’s co-founders, maintains a notably low public profile despite the firm’s significant role in global market-making across equities, derivatives, and ETFs. 

Granieri has rarely given interviews and has limited public presence relative to the firm’s scale.

Jane Street has also drawn attention due to its historical ties to figures involved in major crypto collapses. 

Sam Bankman-Fried, founder of FTX, previously worked at Jane Street before launching Alameda Research and later FTX. 

He was convicted in U.S. federal court on fraud and conspiracy charges tied to the misuse of customer funds following FTX’s collapse and is serving a prison sentence.

Similarly, Caroline Ellison, former CEO of Alameda Research, also previously worked at Jane Street. 

Ellison pleaded guilty to federal fraud charges related to the FTX case and received a prison sentence. There has been no allegation that Jane Street was involved in the misconduct at FTX or Alameda.

Some observers have additionally noted that Jane Street’s corporate social media accounts appear to have removed prior public posts, though the firm has not publicly commented on that matter.

Bechler and other commentators have also referenced a 2025 enforcement order by the Securities and Exchange Board of India, which accused Jane Street entities of manipulating index derivatives in India. 

Jane Street has disputed aspects of that order. No comparable U.S. finding has been issued regarding Bitcoin markets.

There is currently no formal U.S. enforcement action alleging that Jane Street suppressed Bitcoin’s price. 

The Terra-related litigation remains unresolved, and the observed trading patterns have not resulted in regulatory charges. 

Calls for greater transparency around ETF market-making and derivatives disclosure continue as Bitcoin markets further integrate with traditional finance.