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US commodities regulator investigates crypto arm of Chicago-based trading firm Jump: report
US federal commodities regulators are reportedly investigating the crypto activities of Chicago-based trading company Jump.
Citing a person familiar with the matter, Fortune reports that the Commodity Futures Trading Commission (CFTC) is investigating Jump’s trading and investment activities.
The company known for its algorithmic and high-frequency trading strategies launched its crypto division, Jump Crypto, in September 2021.
He eventually became an active market maker and investor in the space, backing crypto projects such as blockchain connectivity platform Wormhole, Oracle Pyth Network, and Solana (GROUND) Firedancer validator client.
But Jump has been involved in hacks and failures. He was a top market maker on the FTX exchange and lost nearly $300 million when the former crypto empire collapsed in late 2022.
He was also embroiled in controversy involving Terraform Labs, the company behind the failed stablecoin TerraUSD, following allegations that it secretly supported the Terra peg.
The United States Securities and Exchange Commission (SEC) did not file charges against Jump when it sued Terraform and its founder Do Kwon, but the trading company has since scaled back its crypto activities and even opted not to offer Bitcoin in cash (BTC) exchange-traded fund.
Fortune says the CFTC’s investigation into Jump’s involvement in crypto does not constitute evidence of wrongdoing, although it is not yet clear whether the regulatory agency plans to file charges against the company.
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