SEBI Halts Jane Street Amid Market Manipulation Probe, Crypto Trading Volume Tripled

India's Securities and Exchange Board (SEBI) has suspended Jane Street Group's operations in the country effective July 4, 2025, following allegations of market manipulation. The New York-based firm, which provides crypto trading services alongside its traditional securities business, saw its digital asset trading volume triple year-over-year.

Jane Street executed $110 billion in cryptocurrency purchases and equivalent sales last year, a dramatic increase from its $31 billion buy volume in 2023. The firm's sophisticated options trading strategies reportedly generated $566.3 million in profits, drawing regulatory scrutiny. SEBI's blanket ban prohibits the firm from participating in Indian securities markets indefinitely.

While Jane Street hasn't publicly addressed the allegations, the enforcement action signals SEBI's hardening stance against market manipulation. The probe focuses particularly on the firm's options trading activity, which delivered outsized returns. Market participants anticipate Ripple effects across global trading desks as regulators intensify oversight of cross-asset trading strategies.