According to @BullTheoryio, a new lawsuit filed in the U.S. District Court accuses Jane Street of leveraging insider information during the Terra ecosystem's collapse in May 2022. The allegations suggest that the firm profited from the $40 billion downfall of LUNA and UST while exacerbating the system's instability. This development could have significant implications for trading practices and regulatory scrutiny in crypto markets.

According to @ai_9684xtpa, Polymarket has witnessed a trading volume of $2.435 million on bets related to which crypto company ZachXBT will expose for insider trading. Metaora currently leads the predictions with a 30% share, followed by MEXC and other familiar names. ZachXBT has promised to reveal a significant investigation involving a major cryptocurrency company accused of insider trading over an extended period. This has sparked widespread speculation and active discussion among global crypto enthusiasts.

According to @StockMKTNewz, the administrator responsible for winding down Do Kwon’s Terraform Labs has filed a lawsuit against Jane Street, alleging that the firm engaged in insider trading. The accusations claim that Jane Street unlawfully profited and contributed to the collapse of Terraform Labs' cryptocurrency ecosystem. This legal development could have significant implications for crypto trading practices and regulatory scrutiny.

According to the source, Kalshi has resolved a backlog of suspicious activities and is preparing to share details on measures taken against insider trading. This proactive approach underscores Kalshi's commitment to transparency and market integrity, which could influence trader confidence in its platform.

According to @ai_9684xtpa, blockchain investigator ZachXBT has announced an upcoming major investigation into one of the most profitable cryptocurrency companies. The investigation will reveal allegations of prolonged insider trading by multiple employees who misused internal data. Speculation surrounds which top firms might be implicated, with reference to past rankings of leading crypto companies such as Tether, Binance, Coinbase, Circle, and Kraken.

According to ZachXBT, a significant investigation is set to expose insider trading activities within one of the cryptocurrency sector's most profitable companies. The report alleges that multiple employees exploited internal data to gain financial advantages over an extended period. This revelation could have substantial implications for the firm's reputation and the broader crypto market.

According to @BitMEXResearch, Lord Mandelson reportedly informed Jeffrey Epstein of a €500 billion bailout for the Eurozone on May 9, 2010, prior to its official announcement the next morning. The disclosure raises concerns about potential insider trading and its impact on financial markets.

According to @lookonchain, wallet z5m3Ja bought 29.08B $DONT for about $4.1K before Nasdaq-listed DeFi Dev Corp announced the token, and the position reached roughly $1.13M within 3 hours, source @lookonchain with on-chain traces on Solscan. According to @lookonchain, the wallet had been inactive for three months and has only traded $DONT, which @lookonchain flags as suggestive of insider activity, with transactions visible on Solscan. According to @lookonchain, the address has sold 10.6B $DONT for about $182K and still holds 18.5B valued near $955K, indicating ongoing distribution that traders can track on Solscan. According to @lookonchain, the wallet is actively dumping $DONT for profit, so traders can monitor this address on Solscan to gauge real time flow before executing entries or exits.

According to @EvgenyGaevoy, insider trading on prediction markets like Polymarket and Kalshi should not be normalized, and he states he will think less of those who engage in it, signaling reputational risk for market participants, source: X post by @EvgenyGaevoy, Jan 5, 2026. He publicly endorses @karbonbased’s guidance that if you possess material non-public information obtained through private channels, you should not trade the related market, source: X post by @EvgenyGaevoy, Jan 5, 2026; X post by @karbonbased, Jan 5, 2026. The guidance further warns that relying on a technicality that insider trading rules do not apply to CFTC derivatives is unlikely to hold up and may carry criminal risk, including prison, source: X post by @karbonbased, Jan 5, 2026; supported by X post by @EvgenyGaevoy, Jan 5, 2026. Trading takeaway: abstain from executing or signaling trades on Polymarket or Kalshi when in possession of material non-public information to mitigate legal exposure and reputational damage, source: X post by @EvgenyGaevoy, Jan 5, 2026; X post by @karbonbased, Jan 5, 2026.

According to @lookonchain, three newly created wallets on Polymarket placed large positions on markets predicting Venezuelan President Nicolás Maduro would be out of office just hours before his arrest, and collectively realized $630,484 in profit (source: https://twitter.com/lookonchain/status/2007639475497881625). Wallet 0x31a5 invested about $34,000 and booked about $409,900 in profit on the relevant Polymarket market, as shown on its activity page and summarized by @lookonchain (source: https://polymarket.com/@0x31a56e9E690c621eD21De08Cb559e9524Cdb8eD9-1766730765984?tab=activity; source: https://twitter.com/lookonchain/status/2007639475497881625). Wallet 0xa72D invested about $5,800 and profited about $75,000 on the same theme, per its Polymarket profile and @lookonchain’s report (source: https://polymarket.com/@0xa72DB1749e9AC2379D49A3c12708325ED17FeBd4-1766534754187?tab=activity; source: https://twitter.com/lookonchain/status/2007639475497881625). Wallet SBet365 invested about $25,000 and realized about $145,600 in profit on Venezuela–Maduro markets, as reflected on its Polymarket activity and cited by @lookonchain (source: https://polymarket.com/@SBet365?tab=activity; source: https://twitter.com/lookonchain/status/2007639475497881625). The three wallets were created and pre-funded days in advance, then executed the large bets just hours before the arrest, and only wagered on Venezuela/Maduro-related events with no other betting history, which @lookonchain characterizes as a clear case of insider trading for prediction market participants to note (source: https://twitter.com/lookonchain/status/2007639475497881625).

According to the source, a group of Coinbase stockholders filed a lawsuit against company leadership alleging a yearslong insider-trading scheme involving billions of dollars of company stock; source: https://twitter.com/DecryptMedia/status/1995615191321485657. For trading, this headline adds legal overhang risk to Coinbase (COIN), a factor that can elevate near-term volatility and pressure valuation until court filings and updates clarify exposure; source: https://twitter.com/DecryptMedia/status/1995615191321485657. Crypto markets could see sentiment spillover via perceived exchange risk, so traders may monitor COIN price action, options implied volatility, and liquidity on the Coinbase venue for knock-on effects to broader crypto; source: https://twitter.com/DecryptMedia/status/1995615191321485657.

According to @nic__carter, a scenario was raised where confidential M&A documents uploaded to an AI chat are later surfaced as a stock pick, questioning whether trading on that output constitutes insider trading. Source: Nic Carter on X, Nov 24, 2025. Under SEC Rule 10b-5, trading on material nonpublic information obtained through a breach of duty is prohibited, which directly covers confidential deal information used for securities trading. Source: SEC Rule 10b-5, Securities Exchange Act of 1934. The misappropriation theory makes it illegal to trade using confidential M&A information taken in violation of a duty to the information source, even if the trader is not an insider of the target. Source: United States v. O'Hagan, 521 U.S. 642 (1997). A recipient of a tip can be liable if they know or should know the information was disclosed in breach of a duty and they trade on it for personal benefit or to benefit the tipper. Source: Dirks v. SEC, 463 U.S. 646 (1983). The communication medium, including AI chat systems, does not change liability, as insider trading laws apply regardless of how MNPI is transmitted or surfaced. Source: SEC v. Wahi et al., No. 2:22-cv-01009 (W.D. Wash. 2022) SEC complaint and Litigation Release No. 25446 (application of insider-trading theories to digital assets and modern communication channels). For traders, if an AI-generated recommendation plausibly originates from leaked, nonpublic M&A materials, trading on it with knowledge or reckless disregard of its MNPI nature can trigger liability under Rule 10b-5 and tippee liability standards. Source: SEC Rule 10b-5; Dirks v. SEC, 463 U.S. 646 (1983).

According to @adriannewman21, recent insider trading incidents are creating material headwinds for DeFi adoption and sentiment, elevating regulatory narrative risk for decentralized protocols (source: X/@adriannewman21, Oct 11, 2025). The author adds that permissionless technology does not require anonymous identity and expects more voices to advocate KYC even for DeFi, a stance that could impact governance tokens, DEX activity, and on-chain liquidity conditions (source: X/@adriannewman21, Oct 11, 2025). For traders, this warning frames near-term risk to DeFi token valuations and volumes when KYC or enforcement headlines surface; monitoring policy discourse and liquidity flows can help manage exposure (source: X/@adriannewman21, Oct 11, 2025).

According to @MilkRoadDaily, the U.S. SEC has reached out to more than 200 digital asset trading platforms with insider trading concerns, signaling heightened regulatory scrutiny for the sector (source: @MilkRoadDaily, X post dated Sep 28, 2025). According to @MilkRoadDaily, a deeper investigation is now expected, which the source characterizes as bad news for crypto treasuries due to rising compliance and headline risk (source: @MilkRoadDaily, X post dated Sep 28, 2025).

According to @PelosiTracker_, Rep. Anna Paulina Luna will file a special discharge petition on Aug 29, 2025 to force a vote on a congressional stock trading ban, stating she aims to end “corrupt & blatant insider trading” by members of Congress, source: @PelosiTracker_ (X, Aug 28, 2025). The post provides no bill text, vote schedule, or market details beyond the intent to force a vote on banning congressional stock trading, source: @PelosiTracker_ (X, Aug 28, 2025).

According to The Kobeissi Letter, corporate insiders significantly reduced their stock purchases during July's S&P 500 rally, with only 151 companies reporting insider buying—the lowest figure since at least 2018. Although insider selling slowed compared to June, the sharper decline in purchases led to a drop in the insider buy-to-sell ratio. This trend may indicate increased caution among insiders, which traders often interpret as a potential signal for near-term market reversals or heightened volatility. Crypto traders should monitor these equity market dynamics closely, as risk sentiment shifts in traditional markets can heavily influence digital asset prices and capital flows. Source: The Kobeissi Letter.

According to @KobeissiLetter, only 151 S&P 500 companies experienced insider stock purchases in July, marking the lowest figure since at least 2018. Although insider selling slowed compared to June, the drop in purchases was even steeper. This led to a significant decline in the insider buy-to-sell ratio, signaling reduced insider confidence during the market rally. Such insider activity often acts as an early indicator for traders, suggesting caution for both equity and crypto markets due to potential shifts in overall risk sentiment (source: @KobeissiLetter).

According to @KookCapitalLLC, significant cracks are appearing within the BONK token ecosystem, with allegations that insiders, the BONK team, and a so-called cabal have profited at the expense of regular investors. @KookCapitalLLC asserts that the BONK project is experiencing an exit scam, resulting in widespread losses for retail holders. These developments raise urgent trading concerns for Solana-based meme coins, emphasizing the need for heightened risk management and careful due diligence when trading tokens like BONK (BONK). Source: @KookCapitalLLC.

According to @ai_9684xtpa, a well-capitalized insider has initiated the rollover of four substantial short positions in the cryptocurrency market, with a combined value exceeding $300 million and current unrealized profits totaling $5.93 million. These large-scale moves indicate significant market confidence and could signal short-term bearish sentiment among major players. Active traders should closely monitor open interest and liquidation levels for potential volatility and price movement opportunities, as reported by @ai_9684xtpa.

According to Adrian (@adriannewman21), the initial coin offering (ICO) landscape remains complex, often resembling a competitive environment dominated by insiders such as venture capitalists, founders, and market makers. Adrian highlights that the previous ICO boom resulted in significant market failures and regulatory scrutiny, which still impact current trading strategies and market sentiment. This underscores the importance for traders to closely monitor regulatory developments and insider activities as these factors can lead to increased volatility and risk in token launches and early-stage crypto investments (source: @adriannewman21).