The president of Jump Crypto went down
Kanav Kariya, head of Jump Trading's digital asset division, has announced his resignation as president of Jump Crypto amid widely reported reports of a Commodity Futures Trading Commission (CFTC) investigation.
In a June 24 social media post, the now-former president of a crypto trading company wrote that he plans to focus on personal relationships and reading while looking for his next job. Kariya also reflected on the past several years at Jump Crypto, which he described as “phenomenal.”
Crypto's “event” years skip
The jump crypto crisis started in 2018. In February 2022, hackers exploited the wormhole bridge and fraudulently exchanged 120,000 frozen Ethereum tokens (wETH) for Ether (ETH) and other tokens on the Solana blockchain. Following the incident, Jump Crypto, which owns the developer behind the wormhole bridge, took responsibility for the damage by depositing an even number of Ether tokens worth $321 million at the time of the hack.
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In the year The famous collapse of the Terra ecosystem in May 2022 affected the business, prompting investor accusations that JumpCryp colluded with Terra founder Do Kwon to make a $1.3 billion profit in order to maintain the value of Terra UST, an algorithmic stable coin pegged to the US dollar. UST and Tera have benefited from growing the ecosystem by receiving huge discounts, sometimes 99% off the market price.
Later that year, concerns about Jump Crypto's exposure to FTX began to surface. Company spokespersons at the time allayed investor fears by stating that the business was “one of the best capitalized and liquid companies in crypto” while assuring the public that JumpCrypt would not be shutting down.
CFTC investigation
Although the exact scope of the pending CFTC investigation into Jump Crypto has yet to be revealed, the probe could include the trading activities raised in the investor's lawsuit and cited as part of the Securities and Exchange Commission's indictment against Terraform Labs.
It's important to note that the CFTC's investigation into Jump Crypto isn't indicative of guilt or wrongdoing, as the regulator didn't make many findings.
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