Who Is The Silent Ghost Behind Crypto Meltdowns? Find Out Now!

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In the dim glow of a courtroom’s fluorescent lights, Jane Street reappears, beckoned back into the spotlight by a creditor’s complaint that accuses them of reading the walls of Terraform Labs before they whispered their own downfall.

The suit reads like a confession: Jane Street, armed with secrets not yet seen by the public eye, allegedly slipped out of positions on TerraUSD (UST) and LUNA, reaping profit as the stablecoin slipped its dollar clasp.

There we go: Jane Street, the unseen hand that sparked the blue‑sky winter of 2022, first tearing down the token’s stability and then pretended to rescue Terra, all the while nursing the last drops of its dying worth.

– zerohedge (@zerohedge) February 24, 2026

The Terraform Lawsuit Breathes New Suspicion Into Jane Street’s Shadowy Existence

According to the indictment, Terraform stashed away roughly $150 million from the Curve pools that buffered UST. Then, almost as if on cue, Jane Street wallets are said to have liquidated or sold tens of millions in UST.

Terraform claims those moves started a distrust spiral, bleaching off $40 billion of market value in a single breath.

But sacks of doubt remain; Jane Street denies the charge, pledging to defend itself in court. No judge has spoken yet.

🚨 $LUNA COLLAPSE: JANE STREET FACES INSIDER TRADING CLAIMS

The lawsuit alleges Jane Street learned from an intern inside Terraform to front‑run trades in 2022’s $40B UST crash, netting over $200M.

Jane Street denies all, calling the allegations a mirage.

– CryptosRus (@CryptosR_Us) February 24, 2026

A Looped Web of Implicated Charades

Jane Street’s moniker follows a parade of chaotic collapses, most famously FTX-yet no explicit misconduct is linked to the firm there.

The connection is human: Sam Bankman‑Fried, once a trader at Jane Street, and Alameda’s Caroline Ellison, too, cut their financial chops there.

– be Sam Bankman‑Fried
– born in 1992, inside Stanford’s ivy
– parents: law professors

2010-2014: MIT, physics and math 101
– lives in a weird group house
– crosses paths with effective altruists

2013: Jane Street internship

– learns real trading
– ETFs, arbitrage…

– StarPlatinum (@StarPlatinum_) February 10, 2026

This tapestry paints Jane Street as a breeding ground for the sharpest quantitative minds, but void of concrete proof of any orchestrated fraud with FTX’s ruin.

The investigation leveled the blame on FTX’s own stewardship: misuse of funds and capricious leadership.

The Market Maker in the Shadow of the Avalanche

Jane Street exists as a global firm that runs algorithms and statistical sorcery to trade a spectrum of assets, now gripping cryptocurrency too.

They do not own any exchanges or mint tokens; they simply sit between buyers and sellers, smoothing the market’s waves.

Because they are market makers, they inevitably touch the veins of most crypto firms, and with them, the tremors of every collapse.

In 2000 a little‑known proprietary trading house was birthed: Jane Street Capital

Last year, they carved a record of net trading revenue over $10B, comfortably outpacing Goldman and the rest

🧵 How did they do it? Let’s untangle the threads.

– Michael Burry Stock Tracker ♟ (@burrytracker) October 28, 2024

Between 2020 and 2022, Jane Street became a titan of crypto liquidity, dancing on exchanges, scattering coins across pools. Their footprints, visible on blockchains, say nothing of causation.

Regulators and courts have yet to pin blame on them. The Terraform suit marks the first serious allegation thrust upon the firm for a crypto catastrophe.

The Verdict May Rewrite the Rules of the Game

The Terraform case will decide whether Jane Street’s dealings sliced through legal lines or simply reflected the muscle of a market maker’s lifeblood.

Its outcome could also redefine how insider wisdom is viewed in the wild frontiers of decentralized markets.

Until now, Jane Street remains a quiet force, a spectral whisper behind the curtain of crypto’s grand stage, its power anchored by size, code, and an ocean of liquidity, even as rumors stir like restless ghosts.

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2026-02-25 00:20