CDS Crypto News CFTC Investigating Jump Crypto’s Operations
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CFTC Investigating Jump Crypto’s Operations

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Crypto News- CFTC Investigating Jump Crypto's Operations

CFTC Investigating Activities of Jump Crypto

CFTC Investigating– Jump Crypto, the cryptocurrency division of high-frequency trading firm Jump Trading, is currently under investigation by the U.S. Commodities and Futures Trading Commission (CFTC), according to a report by Fortune on Thursday.

A source familiar with the situation told Fortune that the CFTC is examining Jump Crypto’s activities in the crypto market, particularly focusing on its trading and investing practices.

Jump Crypto was publicly introduced in September 2021 by Kanav Kariya, who became the president of Jump Crypto five years after joining the firm as a software engineering intern. Kariya revealed that the project had been in development for six years, initially starting as an intern project at Jump’s research lab at the University of Illinois.

Since its launch, Jump Crypto has become a significant player in the cryptocurrency space, known for its role as a market maker and venture investor. The division has been involved in notable projects like the Wormhole bridge and the Pyth network, establishing a strong presence in the industry.

Jump Crypto Faces CFTC Inquiry

When questioned about Jump’s role in restoring UST’s peg, Kanav Kariya invoked the Fifth Amendment during a deposition with the U.S. Securities and Exchange Commission (SEC).

In March, former Jump employee and whistleblower James Hunsaker testified that Jump co-founder Bill DiSomma directed traders to buy UST, according to a report on the Terraform Labs trial by the Wall Street Journal’s Alexander Osipovich.

Additionally, Jump Crypto faced significant losses during the collapse of FTX. Michael Lewis’ book Going Infinite reveals that the firm lost $206 million, based on private documents from former FTX COO Constance Wang.

FAQs

What is Jump Crypto?

Jump Crypto is the cryptocurrency division of Jump Trading, a high-frequency trading firm. It focuses on trading, investing in, and developing cryptocurrency projects.

Who is investigating Jump Crypto, and why?

The U.S. Commodities and Futures Trading Commission (CFTC) is investigating Jump Crypto. The investigation is focused on the firm’s trading and investing activities in the cryptocurrency market.

For the latest in crypto updates, keep tabs on Crypto Data Space.

CFTC Investigating Jump Crypto's Operations

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