Hacks and Collapses Plague Jump Trading
The Commodity Futures Trading Commission (CFTC) is investigating Chicago-based Jump Trading’s involvement in the crypto market. The firm has faced setbacks, including:
- A $325 million hack of Wormhole
- $300 million in losses from the FTX collapse
- Involvement in the TerraUSD stablecoin collapse
Crypto Crackdown Intensifies
The SEC and DOJ have taken action against individuals and companies related to crypto failures. Jump has been mentioned in these cases but has not been charged with any wrongdoing.
Jump Scales Back Crypto Involvement
Following the scrutiny, Jump has reduced its presence in the crypto sector, spinning off projects and withdrawing from the Bitcoin ETF market.
CFTC Investigation
The CFTC’s investigation is the latest in a series of federal inquiries into the crypto industry. The agency has jurisdiction over many of Jump’s crypto activities.
Enforcement Actions Expected
CFTC Chair Rostin Behnam has indicated that crypto firms can expect increased enforcement actions.
