The Commodity Futures Trading Commission (CFTC) is currently investigating Chicago-based trading firm Jump’s involvement in the crypto industry, including its trading and investment activities. This probe, while not indicative of any wrongdoing, comes after a tumultuous few years for Jump, known for its expertise in algorithmic trading and its significant presence in the crypto market.
Jump made headlines in September 2021 when it announced its crypto division, Jump Crypto, led by Kanav Kariya. The firm played a crucial role in the crypto sector as a top market maker across exchanges and a prominent venture investor, supporting projects like Wormhole, Pyth, and Firedancer. However, cracks began to show in Jump’s operations, with incidents like the $325 million hack of Wormhole and losses on the FTX exchange.
The firm faced further scrutiny during the SEC’s lawsuit against Terraform Labs and its founder, Do Kwon, where Jump was accused of propping up Terra’s stablecoin peg during a crisis. While the SEC did not charge Jump, the firm was mentioned in legal proceedings. The Justice Department also filed a criminal case against Kwon, referencing Jump’s involvement in maintaining Terra’s peg.
The CFTC’s investigation into Jump’s crypto business is the latest in a series of federal probes into the industry. While it is unclear if charges will be brought against the firm, regulatory agencies like the CFTC are closely monitoring activities in the crypto space. CFTC Chair Rostin Behnam has indicated that enforcement actions in the cryptocurrency sector are likely to increase.
Overall, regulatory agencies routinely conduct investigations into companies within their jurisdiction. The CFTC’s inquiry into Jump’s crypto activities underscores the growing scrutiny of the industry by government authorities. Stay updated on the latest developments in the crypto world by subscribing to Fortune Crypto for daily updates on coins, companies, and key players in the market.