Did Jane Street trigger the crypto collapse? New allegations expose deep industry ties.

Added: 2026-06-02

[00:00:00]The 85 million USD swap that Jane Street allegedly utilized to light the match triggered a brutal contagion that swept across the global digital asset industry. The death spiral of Terra USD and Luna kicked off a cascade of company failures that ultimately culminated in the catastrophic bankruptcy of the FTX crypto exchange. Before they left to found the fraudulent hedge fund Alameda Research and the doomed FTX exchange, both Sam Bankman-Fried and Caroline Ellison began their financial careers as traders at Jane Street. The fact that the architects of the FTX fraud learned to trade at the exact same firm now accused of triggering the Terra collapse raises profound questions about the internal culture and risk-taking mindset fostered within the walls of Jane Street. We're told that these kinds of firms generate billions in revenue because they have superior technology and pristine mathematical models. Yet, Jane Street is now fighting allegations of multi-billion dollar manipulation in India and insider trading via a group chat in [music] the crypto sector.