According to sources familiar with the matter, the US Commodity Futures Trading Commission (CFTC) is investigating the cryptocurrency business of Chicago-based trading firm Jump Crypto, including its trading and investment activities. However, this investigation does not imply any evidence of wrongdoing.
Jump Trading is well-known for its expertise in algorithmic trading and has become one of the most active market makers and investors in the cryptocurrency industry in recent years. However, it has also been involved in a series of hacking attacks and collapse events.
The investigation comes after a tumultuous three years for Jump, according to insiders.
Jump is renowned for its expertise in algorithmic trading and announced the establishment of its cryptocurrency division, Jump Crypto, in September 2021, becoming one of the most active market makers and investors in the cryptocurrency industry since then. However, the company has also been involved in several negative incidents over the past three years, including providing funding to cover a $325 million hacking loss for the cross-chain protocol Wormhole and losing nearly $300 million due to the collapse of FTX.
The CFTC’s investigation into Jump’s cryptocurrency business reflects the regulatory body’s increasing focus and oversight on the growing cryptocurrency market. However, it is still unclear whether the agency is considering filing charges against Jump.
