CFTC reportedly probing Jump Crypto’s trading, investment activities


The
US
Commodity
Futures
Trading
Commission
(CFTC)
has
initiated
a
probe
into

Jump
Crypto
for
undisclosed
reasons,
Forbes

reported
on
June
20,
citing
people
familiar
with
the
matter.

The
federal
agency
is
reportedly
examining
the
firm’s
trading
and
investment
activities
in
the
crypto
sector,
though
this
scrutiny
does
not
imply
any
misconduct.

Sources
told
Forbes:

“The
CFTC’s
investigation
into
Jump’s
crypto
business
reflects
the
latest
probe
by
a
federal
agency.”

Neither
the
CFTC
nor
Jump
Crypto
responded
to
requests
for
comment
on
the
ongoing
investigation
and
have
yet
to
make
any
public
statements
about
it
as
of
press
time.

How To Get Free Crypto  

The
investigation
is
part
of
a
broader
crackdown
by
US
regulators
on
the
crypto
industry.
The
CFTC
has
been
ramping
up
its
enforcement
actions,
with
one-third
of
its
2023
enforcement
cases
targeting
crypto
firms.

Jump’s
challenges

Jump
Crypto,
which
launched
its
crypto
division
in
2021,
has
been
navigating
a
series
of
challenges,
including
its
involvement
in
high-profile
hacks
and
the
collapse
of
major
crypto
projects.
In
response,
the
firm
has
scaled
back
its
operations,

spinning
off
various
projects
and
withdrawing
from
the

Bitcoin
ETF
race.

Led
by
Kanav
Kariya,
Jump
Crypto
has
been
a
significant
player
in
the
DeFi
space,
notably
investing
in
the
interoperability
protocol
Wormhole. After
the
protocol
suffered
a
$326
million
exploit
in
February
2022,
Jump
covered
the
losses,
reimbursing
affected
users
in
full.

Additionally,
Jump
was
a
principal
market
maker
for
the
crypto
exchange
FTX,
incurring
nearly
$300
million
in
losses
when
the
exchange
collapsed
in
November
2022.

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The
firm
was
also
involved
with
Terra
LUNA
and

submitted
information
about
the
project
in
confidentiality
to
the
SEC
in
the
watchdog’s
case
against

Terraform
Labs.

Despite
these
setbacks,
Jump
Crypto
remains
a
notable
entity
in
the
industry.
Until
more
information
is
released
to
the
public,
it
is
unclear
whether
the
CFTC
investigation
will
substantially
impact
the
firm.

Mentioned
in
this
article
Posted
In:

Regulation

Go to Source
Author: Assad Jafri


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