CFTC Investigates Jump Crypto’s Trading Activities

CFTC is investigating the activities of major market maker Jump Crypto concerning various aspects of its investment and trading activities, as reported by Fortune.

It remains unclear whether the CFTC is considering any charges against the company.

According to Fortune, the U.S. CFTC is investigating the cryptocurrency business of trading firm Jump Crypto, including its trading and investment activities. Jump Crypto was involved in the $325 million Wormhole hack and lost nearly $300 million in the FTX crash. Jump Crypto…

— Wu Blockchain (@WuBlockchain) June 20, 2024

“Jump Crypto was involved in the $325 million Wormhole hack and losses of approximately $300 million due to the FTX crash. It played a significant role in the Terraform Labs case,” noted journalist Colin Wu.

Jump Crypto is a division of Jump Trading Group, one of the largest trading firms globally. The company engages in research, development, and investments in cryptocurrencies and blockchain technologies.

Founded in 1999, Jump Trading is known for its advanced algorithmic and high-frequency trading methods.

Jump Crypto develops its own products and solutions aimed at optimizing cryptocurrency trading, enhancing blockchain security, and scalability. The firm also provides liquidity for various exchanges and protocols.

As part of a major trading company, Jump Crypto wields significant influence in the digital asset market.

Last year, journalists from The Wall Street Journal revealed that Jump Trading earned $1 billion from UST transactions.

Later, it was reported that the trading company spun off the cross-chain bridge Wormhole into a separate business.

Jump Trading has been gradually reducing its presence in the cryptocurrency industry, citing low trading volumes despite market growth.