News - CFTC launches investigation into Jump Crypto

By Mike Hesp

CFTC launches investigation into Jump Crypto

Former crypto market maker Jump Crypto is reportedly in the crosshairs of the CFTC. The reason would be involvement in scandals such as FTX or Terra (LUNA) are.

The Commodity Futures Trading Commission (CFTC) is scrutinizing market maker Jump Crypto. This reports Fortune Crypto, referring to "persons familiar with the matter."

The U.S. authority is investigating several incidents surrounding the trading company over the past two years. A request for comment to Jump Crypto and the CFTC by Fortune went unanswered.

The trading company used to be among the leading market makers in the crypto industry. They worked with major exchanges or provided liquidity for token launches of new projects.

However, the company came under fire several times, for example in the $320 million hack on the Token Bridge Wormhole or when it was announced that the market maker lost about $300 million in the bankruptcy of crypto exchange FTX.

In addition suggests a Wall Street Journal article that Jump Crypto would have artificially supported the price of Terra-stablecoin UST in 2021 - even before its collapse in May 2022.

Whether the CFTC will file a lawsuit against Jump Crypto is so far unclear. According to media reports, the trading company has now largely withdrawn from crypto trading.

The head of the crypto department, Kanav Kariya, meanwhile, announced his departure via X.

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