Apart from the Terraform lawsuit, Jane Street was also accused of market manipulation by India last year.

GateUser-6433627c · 2026-02-26T02:05:51+00:00

The Securities and Exchange Board of India has issued a ban on Jane Street Group, accusing it of manipulating indices through high-frequency trading and causing losses to small investors, while also freezing approximately $565 million in assets. Additionally, Jane Street faces other lawsuits related to market manipulation.

GateUser-6433627c

2026-02-26 02:05:51

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On February 26, 2025, according to public information, the Securities and Exchange Board of India (SEBI) issued a temporary ban on Jane Street Group, accusing it of manipulating the Indian index (such as the Bank Nifty) through high-frequency trading strategies. SEBI alleges that, on derivatives expiry days, Jane Street bought underlying stocks and futures in the spot market to push up the index, then profited from options trading (causing retail investors to trade at unfavorable prices). SEBI froze assets worth approximately 4.843 billion rupees (about $565 million) and banned Jane Street from trading in the Indian securities market. Recently, allegations of market manipulation against Jane Street have been frequently exposed. The court-appointed bankruptcy trustee for Terraform Labs has sued Jane Street in the U.S. District Court in New York, accusing it of engaging in front-running trades and profiting during Terra’s collapse by using non-public insider information provided by Terra insiders. Additionally, some in the crypto community have accused Jane Street of market manipulation through facilitating market-making for Bitcoin ETFs and Silver ETFs.

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