Jump Crypto, the venture arm of Jump Trading Group, has debunked rumours of a shutdown amid the FTX collapse.
Given the rumors flying around, we want to debunk a few things.
Jump Crypto is not shutting down. We believe we’re one of the most well-capitalized and liquid firms in crypto.
We are still actively investing and trading, so if you’re looking for funding, please get in touch.
— jump_crypto 🔥💃🏻 (@jump_) November 17, 2022
“Jump Crypto is not shutting down. We believe we are one of the best-capitalised and most liquid companies in the crypto space. We are still actively investing and trading,” the statement said.
On November 11, FTX Group filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. Later, Jump Crypto representatives said they were shocked by the latest events but assured clients there were no problems.
2/ This is a massive blow to the industry, but we continue to believe in this space and work alongside others building towards its future.
— jump_crypto 🔥💃🏻 (@jump_) November 12, 2022
However, the community responded skeptically to the company’s message. One Twitter user joked that Jump Crypto would soon admit that it had been affected by the crisis.
2 days later “We have been heavily affected by luna crash and ftx bankruptcy, in order to protect costumers, we are stoping withdrawals”
I think we will find out before the end of the month pic.twitter.com/1Jn01NRS1d
— CryptoF (@fz_crypto) November 17, 2022
Earlier, several major players in the crypto industry stated that they did not have close relationships with the companies of Sam Bankman-Fried and assured clients that the FTX collapse would not affect activity.
Among them was Genesis Global Capital. However, on November 16, the cryptocurrency OTC platformfroze withdrawals and issuance of new loans. The next day its competitor — B2C2 — announced plans to buy the loan portfolio worth about $2.8 billion from the company.
On November 8, BlockFi founder Flori Marquez also reported that all the company’s products were “fully functional”, and the business did not depend on the Bankman-Fried exchange. But just three days later the lending platform said that it could not continue operating normally and would restrict operations due to the lack of clarity regarding the status of FTX and Alameda Research.
According to WSJ, BlockFi is preparing to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code.
Earlier, Multicoin Capital predicted the imminent collapse of trading firms due to FTX and said they expected to see new statements from industry participants about problems.
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