CFTC investigates Jump Crypto's cryptocurrency activities

22 Jun 2024

The CFTC investigation targets the cryptocurrency trading and investment activities of Jump Crypto, one of the famous investment funds in the market.

According to sources familiar with Fortune, the United States Commodity Futures Trading Commission (CFTC) is investigating million-dollar investment fund Jump Crypto for its cryptocurrency-related activities including transactions and transactions. company's investment business.

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

While it is unclear whether the agency is looking into any allegations against the fund, the CFTC investigation continues to weigh heavily on suspicions that Jump Crypto is engaging in shady practices. in the cryptocurrency market.

Jump Crypto is one of the famous crypto investment funds, launched in 2021. The company appointed Kanav Kariya as Chairman even though at that time he was still a former intern only in his 20s.

Since going into operation, Jump quickly became one of the leading market makers on exchanges and invested in prominent projects such as Wormhole, Sui or Celestia.

However, during Jump Crypto's time of operation, the fund also encountered many difficulties. After the collapse of FTX, the company's parent investment fund, Jump Trading, was on the list of the 50 largest creditors with a loss of 206 million USD. The $325 million hack of the Wormhole cross-chain bridge in early 2022 also significantly affected Jump's operations, forcing the fund to spend money to keep the project operating, before recovering lost assets. exit in February 2023.

Jump continued to be embroiled in scandal when the SEC filed a lawsuit against Terraform Labs and founder Do Kwon in February 2023. In the lawsuit, the SEC alleged that a “secret company” maintained the price of Terra during a severe decline in 2021, and then identified as Jump. The SEC accused Terraform and Kwon of fraud when they publicly claimed that the price had spontaneously recovered, but brought no charges against Jump Crypto. Chairman Kanav Kariya was even interviewed and investigated by the SEC in November 2023, but did not announce the final results.

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