Jane Street Liquidated, Is the "Black Box" of Wall Street Market Makers Still Functional?
In 2022, the aftershocks of the collapse of $USTC have not yet settled. Recent court documents reveal that top quantitative firm Jane Street is suspected of using insider information to precisely withdraw $85 million at a critical point during the Terra collapse, becoming a major force in crushing liquidity.
From the recently discussed "10 o'clock crash strategy" to previous heavy fines in India for manipulating options, the market-making logic of these Wall Street giants is remarkably similar: leveraging capital advantages and ultra-low latency algorithms to create panic at points of weak liquidity and profit from it.
This lawsuit, delayed for three years, sends a clear signal: the crypto market is facing severe "cross-cycle accountability." The transparency of on-chain data combined with traditional legal tools is making the front-running trades and insider communications of market makers inescapable. The era of giants running blindly has come to an end; compliance will be the only bottom line in future games.