Jane Street is one of the world’s largest proprietary trading and market-making firms, specializing in quantitative analysis and highly active in derivatives markets. The complexity of its strategies, the scale of its operations, and its distinctive organizational culture have made it a “legend” in financial markets. In recent days, the firm has again drawn attention in connection with serious regulatory allegations and litigation.
In the summer of 2025, India’s regulator SEBI issued an interim order against entities affiliated with Jane Street, which in practice resulted in restrictions on access to the local market. SEBI alleged a scheme involving the exploitation of market microstructure on instrument expiry days—through aggressive order flow in the components of the Bank Nifty index and/or futures contracts, followed by profit-taking in the options market. The regulator cited approximately USD 567 million as the amount of alleged “unlawful gains” to be secured. It is important to emphasize that this is a stage of proceedings involving allegations, not a final, binding determination.
Even more attention has been drawn by a lawsuit filed in the United States on 23 February 2026 by the administrator of the Terraform Labs liquidation process. The complaint raises allegations of using material nonpublic information and front-running liquidity-related actions within the TerraUSD/LUNA ecosystem in May 2022. The litigation theory is that these actions accelerated and deepened the crisis that ultimately led to the project’s collapse. Jane Street has publicly rejected the allegations, calling them baseless and opportunistic, while arguing that investor losses resulted primarily from misconduct and abuses by Terraform’s management.
The Terraform collapse is complex in its own right and forms part of the broader context of the 2022 crypto market liquidity crunch and deleveraging, the later chapter of which was the collapse of FTX. The appearance of a Jane Street angle, along with the fact that portions of the lawsuit are redacted, has fueled speculation in the crypto community and a wave of conspiracy theories—however, this “noise” is not evidence and should be treated separately from the procedural facts.
For now, the key is to distinguish between the two matters: in India, there is a regulatory proceeding at the interim, asset-securing stage concerning alleged conduct on expiry days; in the United States, there is a civil dispute over alleged use of nonpublic information at a critical moment for Terra/LUNA.
The final picture will depend on the evidentiary record and the decisions of regulators and courts, so categorical conclusions should be avoided until the proceedings develop further.
Daily summary: The beginning of the end of disinflation?
Wheat at its highest level in 8 months 📈
Block Inc. lays off 40% of its workforce and rises 16% - Is this a new paradigm?
US Open: Rising oil and PPI pressure Wall Street 📉 Technology and financial stocks drop
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
