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Breaking News: Bitcoin Tops $73,000, Expert Explains Why The Rally Isn’t Over Yet
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Breaking News: Bitcoin Tops $73,000, Expert Explains Why The Rally Isn’t Over Yet

Jane Street Faces New Lawsuit: Trump Media Calls For Federal Investigation

Ronaldo Marquez
Ronaldo Marquez
Last Updated: February 26, 2026 7:41 pm
2 mins read
Jane Street

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Jane Street, one of the world’s largest market-making firms, has come under growing scrutiny as a series of allegations have surfaced linking the company to major disruptions in the crypto market. 

The firm is already facing a federal lawsuit tied to the collapse of Terraform Labs, and now new claims circulating on social media suggest that Trump Media has accused Jane Street and other trading firms of “naked short selling” in a letter to Congress.

Jane Street Rejects Terra Allegations

The legal troubles began earlier this week. On February 23, a lawsuit was filed in the US District Court for the Southern District of New York accusing Jane Street of using confidential information obtained from Terraform Labs to shield itself from heavy losses before the Terra/Luna ecosystem unraveled in May 2022. 

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According to the complaint, Jane Street allegedly leveraged insider knowledge to avoid more than $200 million in potential losses ahead of the implosion. The firm has strongly denied the accusations, characterizing the lawsuit as “desperate” and describing it as a “transparent attempt to extract money.”

Beyond the courtroom, additional claims have gained traction online. Some market participants have alleged that Jane Street manipulated Bitcoin (BTC) prices by operating an algorithm that allegedly triggered consistent sell-offs at 10 a.m. each day for months. 

According to these claims, the strategy involved pushing prices lower, triggering liquidations among retail traders, and then repurchasing Bitcoin at reduced levels in a repeated cycle. 

Naked Short Selling Inquiry

Adding another layer to the controversy, market commentator MartyParty stated on Thursday that Trump Media had sent a letter to members of Congress calling for a full investigation into Jane Street, Citadel and other firms over alleged naked short selling. 

Naked short selling refers to the practice of selling shares without first borrowing them, a tactic that is restricted under US securities law. 

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As of Thursday afternoon Eastern Time, there had been no official confirmation of such a letter, nor any public statement from Trump Media, Jane Street, or Citadel verifying the claim.

Jane Street
The 1D chart shows the total crypto market cap valuation at $2.29 trillion. Source: TOTAL on TradingView.com

Featured image from OpenArt, chart from TradingView.com 

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Ronaldo Marquez
Ronaldo Marquez

Ronaldo Marquez

Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

Read more

Ronaldo's journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

One of Ronaldo's defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

Ronaldo's commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo's writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

However, Ronaldo's aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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Reason to trust

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Created by industry experts and meticulously reviewed
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How Our News is Made

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