US Commodity Regulator Investigating Crypto Arm of Chicago-Based Trading Firm Jump: Report
The post US Commodity Regulator Investigating Crypto Arm of Chicago-Based Trading Firm Jump: Report appeared on BitcoinEthereumNews.com.
US federal commodities regulators are reportedly probing Chicago-based trading firm Jump’s crypto business. Citing a person familiar with the matter, Fortune reports that the Commodity Futures Trading Commission (CFTC) is making inquiries into the trading and investment activities of Jump. The company known for its algorithmic and high-frequency trading strategies launched its crypto division, Jump Crypto, in September 2021. It eventually became an active market maker and investor in the space, supporting crypto projects such as the blockchain connectivity platform Wormhole, oracle network Pyth and Solana (SOL) validator client Firedancer. But Jump became implicated in hacks and failures. It was a top market maker of FTX exchange and lost nearly $300 million when the former crypto empire collapsed in late 2022. It was also embroiled in the controversy involving Terraform Labs, the company behind the failed TerraUSD stablecoin, over allegations that it secretly propped up Terra’s peg. The U.S. Securities and Exchange Commission (SEC) did not file charges against Jump when it sued Terraform and its founder Do Kwon, but the trading firm has since scaled back on its crypto activities and even opted not to offer a spot Bitcoin (BTC) exchange-traded fund. Fortune says the CFTC’s investigation into Jump’s involvement in crypto is not evidence of wrongdoing, albeit it is not yet known if the regulatory agency is mulling filing charges against the company. Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X, Facebook and Telegram Surf The Daily Hodl Mix   Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses…
Filed under: News - @ June 21, 2024 7:10 pm