Jane Street Faces New Lawsuit: Trump Media Calls For Federal Investigation

Jane Street, one of many world’s largest market-making corporations, has come below rising scrutiny as a sequence of allegations have surfaced linking the corporate to main disruptions within the crypto market. 

The agency is already dealing with a federal lawsuit tied to the collapse of Terraform Labs, and now new claims circulating on social media counsel that Trump Media has accused Jane Street and different buying and selling corporations of “bare quick promoting” in a letter to Congress.

Jane Street Rejects Terra Allegations

The authorized troubles started earlier this week. On February 23, a lawsuit was filed within the US District Court for the Southern District of New York accusing Jane Street of utilizing confidential info obtained from Terraform Labs to protect itself from heavy losses earlier than the Terra/Luna ecosystem unraveled in May 2022. 

According to the grievance, Jane Street allegedly leveraged insider data to keep away from greater than $200 million in potential losses forward of the implosion. The agency has strongly denied the accusations, characterizing the lawsuit as “determined” and describing it as a “clear try and extract cash.”

Beyond the courtroom, extra claims have gained traction on-line. Some market members have alleged that Jane Street manipulated Bitcoin (BTC) costs by working an algorithm that allegedly triggered constant sell-offs at 10 a.m. every day for months. 

According to those claims, the technique concerned pushing costs decrease, triggering liquidations amongst retail merchants, after which repurchasing Bitcoin at diminished ranges in a repeated cycle. 

Naked Short Selling Inquiry

Adding one other layer to the controversy, market commentator MartyParty stated on Thursday that Trump Media had despatched a letter to members of Congress calling for a full investigation into Jane Street, Citadel and different corporations over alleged bare quick promoting. 

Naked quick promoting refers back to the follow of promoting shares with out first borrowing them, a tactic that’s restricted below US securities legislation. 

As of Thursday afternoon Eastern Time, there had been no official affirmation of such a letter, nor any public assertion from Trump Media, Jane Street, or Citadel verifying the declare.

Featured picture from OpenArt, chart from TradingView.com