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Jane Street Hit with Terra $40B Insider Trading Suit

disruptionbanking.com

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

#6

Post by wuiheerfoj »

10mins is a lifetime in capital and crypto markets - I find it hard to believe that trading 10mins after the Terraform Labs swap hit the chain constitutes insider trading.

The claim of artificial price inflation with Jump sounds more questionable but TFA doesn’t seem to put it front and centre

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

#7

Post by readams »

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 Time 0 you give them an extremely gameable system that can produce billions of dollars of profit, at Time 10 your system is going to be a smoking wreckage and they are going to have billions of dollars of profit. That’s their whole job, you know? I couldn’t tell you in advance what all the intermediate steps will be, and in fact in hindsight I cannot tell you what the intermediate steps actually were, how Jump and Jane Street made money off the collapse of Terra. But as a heuristic, I mean, come on. Terra was like “hello we have a balloon full of money, here is a pin, dooooooon’t pop the balloon.” Guess what!"

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

#9

Post by necubi »

Infernal wrote: post #3

Is there an article about this written by a human? The “it’s not X. It’s Y” is too distracting.

Matt Levine has a take: https://www.bloomberg.com/opinion/newsletters/2026-02-24/ai-...

> Look, 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 Time 0 you give them an extremely gameable system that can produce billions of dollars of profit, at Time 10 your system is going to be a smoking wreckage and they are going to have billions of dollars of profit. That’s their whole job, you know? I couldn’t tell you in advance what all the intermediate steps will be, and in fact in hindsight I cannot tell you what the intermediate steps actually were, how Jump and Jane Street made money off the collapse of Terra. But as a heuristic, I mean, come on. Terra was like “hello we have a balloon full of money, here is a pin, dooooooon’t pop the balloon.” Guess what!

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