$BTC LEGAL ACTION: Jane Street is currently facing two main legal fronts that have captured the attention of the financial market:
1. Lawsuit over the collapse of Terra/Luna (February 2026)
Recently, the liquidator of Terraform Labs filed a lawsuit against Jane Street alleging insider trading during the collapse of the stablecoin UST in 2022.
The reason: The firm is accused of having obtained non-public information about the withdrawal of liquidity from Terraform and having used a linked wallet to withdraw 85 million dollars in UST just minutes later, which allegedly accelerated the loss of parity (depeg) of the asset.
Response from Jane Street: The company has labeled the lawsuit as a "desperate" and "baseless" attempt to extract money, attributing the collapse to fraud committed by the management of Terraform Labs.
2. Conflict with Millennium Management (2024 - 2025)
In April 2024, Jane Street sued Millennium Management and two of its former operators for the alleged theft of an extremely lucrative "trade secret."
The reason: Two traders left Jane Street to join Millennium, allegedly taking with them an options strategy in the Indian market that had generated profits of 1 billion dollars in a single year.
Unexpected consequence: Although the case closed with a confidential settlement in December 2024, the revelation of these details attracted the attention of the Indian regulator (SEBI). As a result, in July 2025, Jane Street was sanctioned and banned from operating in India under accusations of price manipulation.
The lawsuit against Jane Street, filed by the bankruptcy administrator of Terraform Labs on February 23, 2026, has generated a notable and positive impact on the price of Bitcoin following the revelation of alleged market manipulation tactics
