Jump Crypto under CFTC scrutiny for its market practices

Jump Crypto's trading strategies under federal agency's microscope.

Golden scales balancing crypto and fiat, Jump Crypto probe.

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Chicago-based trading firm Jump Crypto is currently under investigation by the Commodity Futures Trading Commission (CFTC), as reported by Fortune. The probe, which is not indicative of any misconduct, is examining the firm’s trading and investment activities in the crypto sector.

This scrutiny follows a series of setbacks for Jump, including its involvement in hacks and the collapse of major crypto projects. Despite these challenges, Jump has reduced its crypto operations, spinning off projects and withdrawing from the Bitcoin ETF race.

“The CFTC’s investigation into Jump’s crypto business reflects the latest probe by a federal agency,” a person with knowledge of the matter stated.

Both the CFTC and Jump have declined to comment on the ongoing investigation.

Jump is renowned for being one of the top players in high-frequency trading, opening its crypto arm in 2021. The team is led by Kanav Kariya, and the role turned him into one of the most high-profile personalities in the blockchain industry.

Notably, Jump became a significant investor in decentralized finance (DeFi) projects, being one of the key investors of the interoperability protocol Wormhole, which suffered a $326 million exploit in February 2022. Jump quickly bailed the team, paying back affected users in full.

Moreover, Jump was one of the main market makers for FTX, and lost nearly $300 million after the exchange collapsed in November 2022.

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