Trump Media accuses Jane Street of misconduct in stock sales
President Donald Trump’s company, Trump Media, has accused major global algorithmic trader Jane Street of misconduct during stock sales and has called on Congress to conduct a full investigation into the activities of Jane Street, Citadel, and other firms. Jane Street faces a potential lawsuit worth $40 billion.
The letter also alleges that Jane Street's algorithmic bots manipulated cryptocurrency prices and contributed to the recent Bitcoin crash. It points to the repeated dumping of large Bitcoin packages every morning at 10 a.m. Eastern US time over several months, which led to the liquidation of retail traders' leveraged positions. Jane Street’s strategy reportedly involves accumulating large volumes of stocks or cryptocurrencies and then rapidly unloading these assets using algorithms, causing sharp price volatility and declining asset values.
This development may trigger tighter regulatory oversight of algorithmic traders and result in extensive legal proceedings, given the multi-billion dollar scale of the claims against Jane Street.
