Key Points:
- After scaling back due to regulatory uncertainty, Jump Trading is increasing U.S. crypto trading volume and hiring new talent.
- The company faces ongoing investigations from the SEC and CFTC, as well as a lawsuit from Fracture Labs over alleged token dumping.
Jump Trading, a major market maker in the cryptocurrency sector, is reviving its U.S. digital asset operations after a period of retrenchment driven by regulatory uncertainties.
The company, which scaled back its activities following the collapses of Terra Luna and FTX, is now increasing its U.S. trading volume and expanding its workforce.
Jump Trading Resumes U.S. Crypto Operations Amid Market Recovery
Despite curtailing its U.S. operations, Jump Trading continued its digital asset trading and market-making activities globally. Now, with a more favorable regulatory climate emerging, the firm is looking to hire additional crypto engineers and intends to fill U.S. policy and governmental liaison roles, according to CoinDesk.
Jump Trading became a focal point of regulatory scrutiny in the aftermath of the Terra Luna and FTX debacles. Reports indicated that the firm had reduced its U.S. presence, including spinning out its Wormhole project and cutting Jump Crypto’s staff by half. At its peak in 2022, the division employed approximately 150 people.
Allegations of Market Manipulation Keep Jump in the Spotlight
The Chicago-based trading company also faced legal challenges. In October 2024, Fracture Labs filed a lawsuit against Jump Trading, alleging the company’s actions led to a drastic decline in the value of DIO tokens. The lawsuit claimed that Jump, which had been contracted as a market maker for DIO tokens on the HTX exchange, dumped the tokens, causing their value to plummet by over 99%.
Additionally, Jump has been linked to allegations of market manipulation. The U.S. Securities and Exchange Commission (SEC) investigated the firm in 2023, scrutinizing its role in subsidizing LUNA-UST during its initial depegging event, which reportedly resulted in profits exceeding $1.28 billion.
Meanwhile, the Commodity Futures Trading Commission (CFTC) has been examining Jump Crypto’s activities, particularly its support of 120,000 ETH for Wormhole following a $325 million hack and its potential involvement in FTX’s collapse in 2022.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Latest
Press Release
Stabull Finance ($STABUL) Ignites a DeFi Revolution — Only on ProBit Global’s Launchpad
