Is Wall Street Manipulating XRP? New Exposé Raises Fresh Concerns

Crypto did not get calmer in February 2026, even though prices tried to act like everything was fine. A fresh court fight tied to the TerraUSD collapse has pushed one big Wall Street name back into the spotlight, and the discussion now touches Bitcoin, XRP, and the way ETFs interact with spot markets.

Levi, a YouTuber who covers crypto market structure, laid out a simple claim in his latest video. Jane Street, one of the most powerful trading firms on Wall Street, sits close to the plumbing of modern markets. Levi argues that this access could give a firm like that an edge in crypto too, even if none of the allegations have been proven in court.

A lawsuit filed by the administrator handling Terraform Labs’ wind down accuses Jane Street of insider trading linked to Terra’s 2022 collapse. The complaint was filed in Manhattan federal court, and Jane Street has denied wrongdoing.

That legal fight matters for more than old history, because it reopened a broader question. How much influence can large trading firms have when they operate across spot markets, derivatives, and ETF plumbing at the same time.

• Levi’s Core Claim Focuses On Repeated 10 A.M. Bitcoin Dips And ETF Market Plumbing
• Authorized Participant Powers Make The Manipulation Debate Harder To Ignore
• XRP Enters The Conversation Through ETF Holdings And Institutional Exposure

Levi’s Core Claim Focuses On Repeated 10 A.M. Bitcoin Dips And ETF Market Plumbing

Levi points to a pattern many market watchers have discussed since late 2025. Bitcoin often dropped around 10 a.m. Eastern, close to the U.S. stock market open, and the rest of the crypto market frequently moved with it.

The idea Levi explores is not complicated, even though the mechanics can look complex from the outside. A firm that plays a major role in ETF share creation and redemption can move liquidity in ways that regular traders cannot. Critics of Jane Street’s role argue that timed selling pressure could push prices lower, create forced liquidations in leveraged markets, then allow a rebuy at cheaper levels later.

None of that has been proven as fact, and Levi frames it as alleged behavior. The point of his video is that the structure exists for something like that to be possible, especially when huge pools of capital sit behind ETF activity.

Authorized Participant Powers Make The Manipulation Debate Harder To Ignore

One reason this story keeps returning is the “authorized participant” role used in many ETFs. Authorized participants can create and redeem ETF shares using the underlying asset. That mechanism is normal, legal, and central to how ETFs track price.

Levi’s concern comes from what critics think could happen if that mechanism gets used in a directional way. Selling pressure in the spot market can pull price down fast during thin liquidity windows.

Derivatives markets can amplify the move once liquidations begin. A firm that already understands liquidity placement could benefit from that sequence, at least in theory, because the same move that pushes price down can also set up a cheaper re-entry.

Market structure writers have pushed back on the manipulation narrative, arguing that market makers often stay close to neutral exposure and earn spreads instead of running directional plays. That alternative explanation exists, and it shows why the debate stays messy.

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XRP Enters The Conversation Through ETF Holdings And Institutional Exposure

Levi also brings XRP into the story through the ETF angle. Jane Street has appeared in discussions about institutional exposure to XRP related ETF products, and Levi argues that large holdings could create similar worries for XRP if the same playbook ever applied. Reporting around XRP ETF activity and institutional positioning has fueled that part of the conversation.

This does not mean XRP is being manipulated as a confirmed fact. It does explain why XRP holders feel uneasy when the topic turns to who controls liquidity, who sees order flow, and who has the balance sheet to move markets during key time windows.

Levi’s video lands at a time when the Terraform-related lawsuit is still fresh, and early court steps can shape how long the story stays alive. The next developments will likely come from court filings, responses from the defendants, and whether regulators show interest in any broader market structure questions tied to crypto trading and ETFs.

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XRP investors do not need conspiracy language to take this seriously. Market structure already favors the biggest players in every asset class, and crypto is no exception. The real question is whether this episode ends as loud speculation around normal ETF plumbing, or whether the legal process uncovers details that change how people view institutional power in XRP and the wider crypto market.