The investigation examined Jump’s trading and investment activities in the cryptocurrency market.
It is important to clarify that
an investigation
does not imply any improper behavior by Jump.
Over the past three years, Jump has faced significant challenges. The company, known for its algorithmic trading, has become a key player in the cryptocurrency market, providing market-making services and investing in numerous crypto projects. However, several notable incidents have damaged the company’s reputation.
Jump Crypto was officially launched in January 2021, with Kanav Kariya, a former intern at Jump Trading Group, appointed as the CEO. The company quickly rose to become a leading market maker, providing liquidity for new tokens and making significant investments in the field. Jump has also developed notable projects through its incubation and engineering departments, such as Wormhole, Pyth, and Firedancer.
Read more:
A Taiwanese citizen was prosecuted for placing cryptocurrency bets on the outcome of national elections.
However, shortly after, Jump’s operations faced major challenges. In 2022, the Wormhole platform experienced a hacker attack, resulting in a loss of $32.5 billion. Jump compensated the investors, demonstrating its strong financial position. Later that year, Jump suffered a loss of nearly $3 billion due to the collapse of FTX, a major participant in the exchange.
In January 2023, 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 TerraUSD stablecoin, sparking further controversy.
Jump is considered a company that cautiously helped stabilize TerraUSD during the crisis in 2021, although no charges have been brought against it.
