The investigation examined Jump’s trading and investment activities in the cryptocurrency market.
It is important to clarify that the investigation does not imply any wrongdoing on the part of Jump.
Over the past three years, Jump has faced serious challenges. Known for its algorithmic trading, the firm became a significant player in the crypto market, offering market-making services and investing in multiple crypto projects. However, several high-profile incidents tarnished the company’s reputation.
Jump Crypto officially launched in September 2021, with Kanav Karia, a former intern at Jump Trading Group, appointed as president. The firm quickly rose to become a leading market maker, providing liquidity for new tokens and making significant investments in the sector. Jump also developed notable projects such as Wormhole, Pyth, and Firedancer through its incubation and engineering branch.
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However, Jump’s operations soon encountered major challenges. In 2022, the Wormhole platform suffered a hacker attack, resulting in a loss of $325 million. Jump compensated investors, demonstrating its substantial financial capacity. Later that year, the collapse of the FTX exchange, where Jump was a key participant, led to losses of nearly $300 million for the firm.
Additional controversies arose in February 2023 when the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Terraform Labs and its founder Do Kwon, accusing them of fraud related to the stablecoin TerraUSD.
Jump was mentioned as a company that discreetly helped maintain the peg of TerraUSD during the 2021 crisis, although no charges have been filed against it.
