According to sources cited by Forbes, the U.S. Commodity Futures Trading Commission (CFTC) is investigating the cryptocurrency business of the Chicago-based trading firm Jump Crypto, including its trading and investment activities. However, this investigation does not imply evidence of any wrongdoing.
Jump Trading is 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, but has also been involved in a series of hacking attacks and market crashes.
The investigation comes after three turbulent years for Jump, according to sources familiar with the matter.
Jump, known for its expertise in algorithmic trading, publicly announced the establishment of its cryptocurrency division, Jump Crypto, in September 2021, and has since become one of the most active market makers and investors in the cryptocurrency industry. However, the company has also been involved in several negative incidents over the past three years, including providing funding to fill a $325 million hacking attack loss for the cross-chain protocol Wormhole, and losing nearly $3 billion due to the collapse of FTX.
The CFTC’s investigation into Jump’s cryptocurrency business reflects regulatory agencies’ growing concerns and oversight of the cryptocurrency market, but it is currently unclear whether the agency is considering charges against Jump.