Mr. Beast Team Member Involved in Kalshi Insider Trading Fined

On February 26, rumors circulated that Chinese regulators were reviewing Jane Street’s trading activity in the Chinese ETF market. However, a source close to Jane Street stated, “I have no knowledge of these rumors, nor any reason to believe they are true—and these rumors should not be linked to Jane Street.” This week, Jane Street, its co-founder, and two employees were charged with insider trading, fraud, and market manipulation. These actions are also blamed for accelerating the 2022 collapse of the $40 billion TerraUSD (UST) stablecoin and its sister token Luna. Founded in 1999, Jane Street is one of the world’s largest proprietary quantitative trading firms. It reported over $20 billion in net trading income and nearly $13 billion in net profit in 2024. Unlike hedge funds, Jane Street does not accept external client funds, so its disclosure requirements are far lower than those of traditional asset management firms—a structure that has long kept the firm shrouded in mystery.

**U.S. Accused of Using Tech Hegemony to Seize Over $30B in Global Virtual Assets (2022-2025) – Chinese Report** A joint report from China’s National Computer Virus Emergency Response Center and other agencies alleges the U.S. has leveraged technological dominance to seize virtual assets worldwide, citing incomplete statistics. Key details: - **Total seizures (2022-2025):** Over $30 billion across cases. - **Largest single case: Chen Zhi** (founder of Cambodia’s Prince Group): - In October 2025, the U.S. Attorney’s Office for the Eastern District of New York charged Chen with telecommunications fraud and money laundering. - Seized ~127,000 bitcoins under his control, valued at ~$15 billion (then-market rates) – the **largest virtual asset seizure in U.S. Department of Justice (DOJ) history**. This case accounted for 50% of total U.S. virtual asset seizures from 2022-2025. - **Binance founder Changpeng Zhao case:** - From 2023-2025, the U.S. pursued Zhao with **

Speculation surrounding Jane Street sparked fresh debate over Bitcoin spot ETF trading mechanisms on February 26, as analysts and industry insiders weighed in on the fund’s operational framework. Analysts noted that Authorized Participants (APs) can create or redeem spot ETF shares under a regulatory exemptive order framework—no immediate open-market Bitcoin buying or selling required. In scenarios like futures contango, APs may also hedge using derivatives such as futures, creating a timing mismatch between ETF fund inflows, spot market buying pressure, and short-term price movements. Industry insiders cited in reports emphasized the mechanism is a common, legitimate ETF practice and does not directly indicate misconduct by any single institution. However, they added it reflects Bitcoin price discovery is increasingly shaped by institutional trading venues—including the futures market. Source: Decrypt

On February 26th, on-chain analyst Ai Auntie (@ai_9684xtpa) noted that two addresses have accumulated a combined 120,000 ETH in long positions, currently holding an unrealized gain of $5.622 million. - Address 0xa5b...01d41: Holds 70,000 ETH, average entry price $1,991.53 - Address 0x6C8...D84F6: Holds 50,000 ETH, average entry price $2,012.11

Public records indicate that in July 2025, India’s Securities and Exchange Board of India (SEBI) imposed an interim ban on Jane Street Group, accusing the firm of manipulating Indian indices—including the Bank Nifty—through high-frequency trading strategies. Per SEBI’s allegations, on derivative expiration dates, Jane Street manipulated indices by purchasing underlying stocks and futures in the spot market to inflate index values, then profited from options positions (leaving small investors with unfavorable trading prices). SEBI has frozen roughly 4.843 billion Indian rupees (about $565 million) in Jane Street assets and barred the firm from trading in India’s securities market. Jane Street has recently faced a wave of market manipulation claims: - The court-appointed bankruptcy trustee for Terraform Labs has sued the firm in the U.S. District Court for the Southern District of New York, alleging Jane Street used non-public insider information from Terra insiders to front-run

Feb 26: Antalpha transferred 1000 XAUT gold tokens (≈$5.16M) to Bybit 15 hours ago, per Onchain Lens monitoring—likely intended for sale.