Jane Street Sued for Insider Trading: Unmasking Bitcoin's 10 AM Dump Mystery

For months, Bitcoin traders watched in frustration as prices plunged every day at 10 AM, wiping out billions in leveraged positions. Now a explosive lawsuit against powerhouse trading firm Jane Street alleges they orchestrated these algorithmic dumps using ALGO wallets, while insider trading fueled the 2022 Terra/LUNA catastrophe. With the pattern vanishing right after the suit hit, crypto's total market cap surged $200 billion, signaling the end of suppression and the dawn of real price action.

The lawsuit, filed by Terraform Labs' bankruptcy administrator Todd R. Snyder, accuses Jane Street of exploiting non-public information to front-run trades during Terra's death spiral on May 10, 2022. According to reports from the Wall Street Journal and Crypto News, a wallet linked to Jane Street withdrew 85 million TerraUSD from Curve's 3pool mere minutes after Terraform quietly pulled 150 million, accelerating the $40 billion collapse. Jane Street dismisses the claims as baseless, but the timing raises eyebrows among on-chain sleuths. X influencers like Bull Theory highlighted eerie '10' patterns: Jane Street's $10 billion quarterly revenue outpacing Wall Street banks, their ban from India's markets for index manipulation with $570 million seized, the May 10 LUNA crash, October 10 2025's $19 billion liquidation cascade, and now BTC's 10 percent rebound post-suit. Ash Crypto pointed to daily 10 AM BTC sells via ALGO wallets that liquidated retail before cheap buybacks, a cycle that halted abruptly after the filing. PrimeX Bitcoin noted the news resurfacing amid broader market trends. Jane Street, second-largest buyer of BlackRock's IBIT ETF, wields immense influence in crypto derivatives. Their high-frequency strategies thrive on volatility, but evidence of systematic dumps suggests retail was mere exit liquidity. Post-lawsuit charts show BTC flipping green weekly after five reds, ETH rallying hard. This isn't coincidence; it's liberation from a single firm's grip.

The revelations shatter trader illusions of fair play, but the upside is massive. Bitcoin climbed 10 percent to $68,000-plus, ETH 14 percent, unlocking genuine discovery unhindered by algos. Confidence rebounds as institutions like BlackRock load up 4,300 BTC, fueling sustained rallies and rewarding HODLers over leveraged degens.

Jane Street's saga exposes crypto's wild west underbelly, but halting the dumps paves a bullish path ahead. Traders, sharpen your charts—the game's finally fair. Expect volatility as probes deepen, but upward momentum looks unbreakable.

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