US federal commodities regulators are reportedly investigating the crypto activities of Chicago-based trading firm Jump.
Fortune, citing a person familiar with the matter, reports that the Commodity Futures Trading Commission (CFTC) is investigating Jump’s trading and investing activities.
The company known for its algorithmic and high-frequency trading strategies launched its crypto division, Jump Crypto, in September 2021.
It eventually became an active market maker and investor in the space, backing crypto projects such as blockchain connectivity platform Wormhole, oracle network Pyth, and Solana (SOL) validator client Firedancer.
But Jump became involved in hacks and failures. It was a top market maker in the FTX exchange space and lost nearly $300 million when the former crypto empire collapsed in late 2022.
It was also embroiled in the controversy surrounding Terraform Labs, the company behind the failed TerraUSD stablecoin, over allegations that it secretly supported Terra’s peg.
The US 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 a spot Bitcoin (BTC) exchange to offer. -traded fund.
Fortune says the CFTC’s investigation into Jump’s involvement in crypto is not evidence of wrongdoing, although it is not yet known whether the regulator is considering filing charges against the company.
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