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Jane Street Hit with Terra $40B Insider Trading Suit

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Re: Jane Street Hit with Terra $40B Insider Trading Suit

#31

Post by bombcar »

yunnpp wrote: post #18
readams wrote: post #7

As always, Matt Levine has the best take on this: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-... "I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at…

I don't really follow this space, but is evaporating $50bn not a concern to anybody?

The reality is that the $50bn was already gone, the collapse just revealed it.

It's like with Madoff; the billions weren't lost when it collapsed, the billions were already gone (or never existed).

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#32

Post by klodolph »

yunnpp wrote: post #18
readams wrote: post #7

As always, Matt Levine has the best take on this: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-... "I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at…

I don't really follow this space, but is evaporating $50bn not a concern to anybody?

The $50bn is what you get when you multiply the number of coins times the price of one coin. This is a kind of fun number to think about but there are a lot of ways it doesn’t match up with reality.

Like, if I make a company with ten billion shares, and then put shares for sale at $5 a piece, and you buy one, then my company would also have a $50bn valuation, by the same logic that Terra / Luna had a $50bn valuation.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#33

Post by arkis22 »

yunnpp wrote: post #18
readams wrote: post #7

As always, Matt Levine has the best take on this: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-... "I am sorry. But if you go to Jump Trading and Jane Street and say “hello, I have an unregulated poorly designed mechanism that could lead to $50 billion of market value collapsing overnight, would you like to trade with me,” they are going to say yes, but their eyes are going to light up, you know? If at…

I don't really follow this space, but is evaporating $50bn not a concern to anybody?

you might consider me an ass, but I think every dollar you put into crypto should be considered dead money. it is not protected by anything. you are gambling on nothing

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#34

Post by klodolph »

I remember this in the news, but I had to look stuff up on Wikipedia to refresh my memory:

https://en.wikipedia.org/wiki/Terra_(blockchain)

> The Anchor Protocol was a lending and borrowing protocol built on the Terra chain. Investors who deposited UST in the Anchor Protocol were receiving a 19.45% yield paid out from Terra's reserves.

What the fuck?

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#35

Post by furryrain »

fn-mote wrote: post #19
sam0x17 wrote: post #2

And oddly, suddenly the daily 10 AM Jane Street BTC sells stop and suddenly crypto is able to rally...

You have to connect this to the market or the article. I certainly don’t believe Jane Street is keeping crypto down somehow. What kind of non-conspiracy theory are you proposing?

The article links to https://x.com/InvestWithD/status/2026381475776692426 which purportedly quotes a Jane Street insider that after pausing BTC activity, they expect BTC will go up.

I personally don't understand how any of this works.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#36

Post by Powdering7082 »

tripplyons wrote: post #13
qgin wrote: post #11

I'm unclear what insider trading means in the context of crypto. Inside what?

It's a bad headline. They used publicly available blockchain transactions and didn't cause the collapse of the Terra ecosystem. Terra collapsed because it was a Ponzi scheme offering 20% APY on a fake stablecoin. The Terra stablecoin was not backed by real dollars, but instead by a cryptocurrency called Luna that did nothing else other than let you issue Terra stablecoins.

I mean they are being sued for insider trading, not exactly a bad headline maybe it could say alleged?

It seems extremely unlikely to me, a casual observer of the shit show that was Luna/Terra, that the suit would be successful

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#38

Post by mcmcmc »

int32_64 wrote: post #22

Didn't many of the FTX cronies come from Jane Street? So many of the biggest fraudsters in crypto came from tradfi and their scams were discovered because they picked the one asset class where being unable to process withdrawals implies a 100% chance of fraud. It makes you wonder how much fraud occurs in tradfi but it goes undiscovered because nobody can self-custody their paper metals or paper stocks.

Jane Street was also banned from trading in India because they couldn’t stop manipulating the market

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#39

Post by johnnycakes »

furryrain wrote: post #35
fn-mote wrote: post #19

Earlier quoted context omitted.

You have to connect this to the market or the article. I certainly don’t believe Jane Street is keeping crypto down somehow. What kind of non-conspiracy theory are you proposing?

The article links to https://x.com/InvestWithD/status/2026381475776692426 which purportedly quotes a Jane Street insider that after pausing BTC activity, they expect BTC will go up. I personally don't understand how any of this works.

The tweet used as the source is a troll. That guy uses the "I just got off the phone with..." template all the time to joke/troll about things going on in markets.

Re: Jane Street Hit with Terra $40B Insider Trading Suit

#40

Post by medi8r »

klodolph wrote: post #34

I remember this in the news, but I had to look stuff up on Wikipedia to refresh my memory: https://en.wikipedia.org/wiki/Terra_(blockchain) > The Anchor Protocol was a lending and borrowing protocol built on the Terra chain. Investors who deposited UST in the Anchor Protocol were receiving a 19.45% yield paid out from Terra's reserves. What the fuck?

A ponzi crypto scheme? It is the only kind.
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