Jane Street, one of the world’s largest market-making firms, has come under growing scrutiny as a series of allegations have surfaced linking the company to major disruptions in the crypto market.
The firm is already facing a federal lawsuit tied to the collapse of Terraform Labs, and now new claims circulating on social media suggest that Trump Media has accused Jane Street and other trading firms of “naked short selling” in a letter to Congress.
Jane Street Rejects Terra AllegationsAccording to the complaint, Jane Street allegedly leveraged insider knowledge to avoid more than $200 million in potential losses ahead of the implosion. The firm has strongly denied the accusations, characterizing the lawsuit as “desperate” and describing it as a “transparent attempt to extract money.”
According to these claims, the strategy involved pushing prices lower, triggering liquidations among retail traders, and then repurchasing Bitcoin at reduced levels in a repeated cycle.
Naked Short Selling InquiryNaked short selling refers to the practice of selling shares without first borrowing them, a tactic that is restricted under US securities law.
As of Thursday afternoon Eastern Time, there had been no official confirmation of such a letter, nor any public statement from Trump Media, Jane Street, or Citadel verifying the claim.
Featured image from OpenArt, chart from TradingView.com
