Bitcoin has been on a roller coaster ride over the past few months, dropping more than 40% since peaking above $120,000 in October 2025, leaving some holders scrambling for answers.
With no clear catalyst like past crashes, a viral theory has swept Crypto Twitter: some blame the trading giant Jane Street for secretly manipulating prices through its role in Bitcoin ETFs (investment funds traded on stock exchanges that track Bitcoin’s price).
This week, the rumors took off on social media when traders spotted a pattern where Bitcoin’s price kept dipping repeatedly in the mornings – often right around 10 a.m. Eastern Time, per Fortune.com – and started blaming it on Jane Street.
Some people are saying the firm is using its special role as an “authorized participant” for popular Bitcoin ETFs from big companies like BlackRock and Fidelity. These middlemen alledgely help keep ETF prices in line with Bitcoin’s actual price by creating or redeeming shares, and they profit from small price differences along the way.
The theories and rumors claim that Jane Street has been secretly selling off Bitcoin every morning to push the price down, then profiting from that drop – or maybe even betting against it in other ways.
The theory gained steam when Bitcoin rallied midweek, with some posters claiming Jane Street “stopped” its alleged pattern after the recent online scrutiny. The Social Media “peanut gallery” also pointed to the firm’s recent controversies, including a prior lawsuit from Terraform Labs (a Singapore-based crypto company), accusing Jane Street of insider trading that pushed the 2022 TerraUSD collapse, wiping out tens of billions.
Jane Street has dismissed those claims as “baseless” and opportunistic, blaming the debacle on Terraform founder Do Kwon’s admitted fraud.
Experts like Rob Hadick of Dragonfly Capital – a former Goldman Sachs trader – have publicly dismissed the accusations against Jane Street, telling Fortune that, “The argument makes zero sense and completely misunderstands how derivatives, perps/futures, and what an AP does for these ETFs.”
The trading giant’s past only adds fuel: It once employed Sam Bankman-Fried and Caroline Ellison before they were arrested for their massive FTX scam. The firm is also known for its secretive, profitable style, which may have bred envy from competitors in the crypto world. Recent reports of the firm scrubbing its X account have only raised eyebrows.
The Dallas Express has been tracking the Bitcoin fluctuations, as well as some of the biggest crypto scams in recent memory.
Examples of 2026’s Shady Crypto Characters
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Chinese national Jingliang Su was sentenced to 46 months in January for laundering $37 million from 174 U.S. victims in Southeast Asian scam operations.
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Florida Police arrested crypto CEO Christopher Delgado in a $328 million Ponzi scheme via Goliath Ventures, luring investors with phony high returns and impacting North Texas victims.
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Paxful Holdings was fined $4 million earlier this month for facilitating money laundering, fraud, and even prostitution on its platform.
On a broader scale, ongoing alerts and warnings continue to pop up about romance scams and fake investment apps draining Texas seniors’ savings through bogus crypto trades. Denton County Sheriff’s Office recently issued warnings about impostors posing as deputies demanding Bitcoin for fake “jury duty” warrants, as previously covered by DX.
These examples spotlight how scammers take advantage of the crypto community’s excitement – and sometimes it’s collective confusion – often preying on regular people with promises of easy money.
Currently, there is no verified evidence supporting the manipulation claims against Jane Street, despite the ongoing discussions. DX will continue to monitor the situation.