Jump Trading Under CFTC Investigation

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.