CFTC Investigates Jump Trading’s Crypto Operations
The US Commodity Futures Trading Commission (CFTC) is reportedly investigating Jump Trading's crypto activities, according to Fortune.
Sources say the Commodity Futures Trading Commission (CFTC) is looking into the Chicago-based firm’s trading and investment operations.
Jump, recognized for its algorithmic and high-frequency trading, launched its crypto division, Jump Crypto, in September 2021. This division quickly became a significant player, investing in projects like Wormhole, Pyth, and Solana’s validator client, Firedancer.
However, Jump has faced challenges. It was a major market maker for the FTX exchange, losing nearly $300 million when FTX collapsed in late 2022. Additionally, it was involved with Terraform Labs, the company behind the failed TerraUSD stablecoin, amid claims that it secretly supported Terra’s peg.
READ MORE: FCA Arrests Two for Running Unregistered Crypto Exchange in UK
Despite these controversies, the U.S. Securities and Exchange Commission (SEC) did not charge Jump in its case against Terraform and its founder, Do Kwon. Since then, Jump has reduced its crypto activities and decided against offering a spot Bitcoin (BTC) exchange-traded fund.
Fortune notes that the CFTC’s investigation does not necessarily indicate wrongdoing by Jump. It remains unclear if the regulatory agency will bring any charges.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
