# The Company Accused Of Rigging Bitcoin Already Got Caught Doing This In India It's Not A Coincidence Source: https://www.youtube.com/watch?v=Z3yijeoB8Sg Recap page: https://rapidrecap.app/video/Z3yijeoB8Sg Generated: 2026-02-28T02:33:42.25+00:00 --- ## Quick Overview The alleged scheme involves the trading firm Jane Street using non-public information from Terraform insiders to execute a systematic, daily manipulation of the Bitcoin price, specifically exploiting the 10:00 AM Eastern Time opening of the US stock market to trigger liquidations that benefit their short positions, a structure they also allegedly used in India and China with other assets. **Key Points:** - The price of Bitcoin was allegedly manipulated by the same company that trained convicted felon Sam Bankman-Fried: Jane Street (0:00-0:08). - Jane Street allegedly used a mechanism to siphon money from average people into elite coffers by exploiting their superior understanding of the market system (0:15-0:28). - The alleged manipulation involves systematically dumping Bitcoin at 10:00 AM ET every trading day, which triggers liquidations for retail traders holding leveraged positions (2:11-3:08). - Jane Street is accused of using legal exemptions (like those related to Regulation SHO) to hide their short positions and derivatives trades, which would be illegal for other financial institutions (2:51-4:00). - The scheme is allegedly replicated across multiple markets, including Bitcoin, Indian stocks, and Chinese silver derivatives, suggesting a pattern of exploiting regulatory loopholes (4:09-4:42). - The lawsuit claims Jane Street's employee, Bryce Pratt, had back-channel communication with Terraform insiders, giving them advanced knowledge to profit from the Terra/Luna collapse (4:53-5:02, 6:41-6:43). - Jane Street vigorously denies the allegations, calling the lawsuit a desperate attempt to extract money, but the alleged structure is described as an almost identical mechanism to the Terra collapse (6:23-6:56, 17:14-17:20). ![Screenshot at 0:06: The video displays an image of Sam Bankman-Fried surrounded by judge's gavels, referencing his conviction and linking the alleged scheme to the same entity that trained Jane Street staff.](https://ss.rapidrecap.app/screens/Z3yijeoB8Sg/00-00-06.jpg) **Context:** This video details allegations made in a recent lawsuit claiming that Jane Street, a highly sophisticated trading firm, systematically manipulated the price of Bitcoin to profit at the expense of retail investors. The core of the claim centers on Jane Street's alleged exploitation of regulatory exemptions and privileged information to execute high-frequency trades at specific times (like the 10:00 AM ET market open) to trigger cascading liquidations among less sophisticated traders, a pattern allegedly repeated in other markets like India and China. ## Detailed Analysis The video asserts that the price of Bitcoin was manipulated by Jane Street, the same company associated with Sam Bankman-Fried's training, using a mechanism to siphon wealth from average individuals to elites by exploiting their superior market knowledge. The alleged scheme involves systematically dumping Bitcoin every trading day at 10:00 AM Eastern Time to trigger margin liquidations on leveraged retail positions, allowing Jane Street to profit from the resulting price drops (Steps 1-4). Crucially, Jane Street allegedly used regulatory exemptions, particularly concerning Regulation SHO (which prevents uncovered short sales), to conceal their short positions and derivatives trades, which would be illegal for other firms. This alleged pattern of manipulation is claimed to have occurred across multiple markets, including Indian stocks and Chinese silver, using an infrastructure that predates crypto entirely. Specifically, the lawsuit filed against Jane Street alleges that employee Bryce Pratt used insider information from the Terraform insiders to profit from the Terra/Luna collapse, moving $150 million out of the Curve liquidity pool without telling anyone. While Jane Street vehemently denies these claims, calling the lawsuit desperate, the alleged mechanism—a daily 2-3% drop at 10:00 AM to trigger liquidations—is presented as a clear, repeatable strategy that benefits them while harming retail traders who lack the same regulatory exemptions and information access. ### Allegations Against Jane Street - Price of Bitcoin manipulated by Jane Street - Money siphoned from average people to the elite - Exploiting regulatory advantages like Regulation SHO exemptions - Alleged insider trading involving Terraform/Do Kwon collapse ### The Manipulation Cycle (Steps 1-4) - Step 1: Jane Street buys real Bitcoin on the open market - Step 2: Jane Street buys spot Bitcoin (allegedly opening massive short positions) - Step 3: Trade everyday at 10:00 AM ET when liquidity is thinnest, dumping BTC to trigger liquidations - Step 4: Liquidate at 2-3% drops automatically, causing panic selling among leveraged retail traders ### The Aftermath (Step 5-6) - Step 5: Jane Street collects the Bitcoin they sold in the initial dump, booking profit on short positions - Step 6: The reset begins as they buy back the Bitcoin they sold at the crashed price, repeating the cycle ### Legal Context and Denial - Lawsuit alleges Jane Street used insider info from Terraform insiders (like Do Kwon's team) to profit from the UST/LUNA meltdown - Jane Street strongly denies allegations, calling the lawsuit desperate and transparent - The structure allegedly used is similar to past alleged manipulations in India and China ![Screenshot at 0:00: The host introduces the topic, alleging that Bitcoin's price was being manipulated by the company that trained Sam Bankman-Fried.](https://ss.rapidrecap.app/screens/Z3yijeoB8Sg/00-00-00.jpg) ![Screenshot at 0:06: A visual montage contrasts falling Bitcoin prices \(with a 'JANE STREET' sign\) against a chained Bitcoin, illustrating the alleged manipulation.](https://ss.rapidrecap.app/screens/Z3yijeoB8Sg/00-00-06.jpg) ![Screenshot at 0:19: The host emphasizes that money is being 'siphoned away' from the average person into the coffers of the elite.](https://ss.rapidrecap.app/screens/Z3yijeoB8Sg/00-00-19.jpg) ![Screenshot at 1:19: Visual evidence showing logos for Goldman Sachs, Citi, and BlackRock, suggesting the large financial players involved in the ETF/market structure.](https://ss.rapidrecap.app/screens/Z3yijeoB8Sg/00-01-19.jpg) ![Screenshot at 2:00: A screenshot of a Wall Street Journal headline: 'Bitcoin fans latch on to 'ridiculous' Jane Street conspiracy to explain price slump', framing the narrative around a specific conspiracy theory.](https://ss.rapidrecap.app/screens/Z3yijeoB8Sg/00-02-00.jpg)