Key Takeaway:
- The CFTC is investigating Jump Crypto, a crypto trading firm linked to Jump Trading Group.
- The CFTC and SEC have been active in suing various crypto companies in the past two years.
- Jump Crypto made a $10 million donation to a crypto-friendly political action committee.
- Jump Crypto suffered losses in connection with FTX and Terraform Labs.
CFTC Investigating Jump Crypto
The U.S. Commodity Futures Trading Commission (CFTC) is conducting an investigation into Jump Crypto, a crypto trading and Web3 infrastructure development firm associated with Jump Trading Group. Fortune reported that the CFTC is also examining the investing activities of this Chicago-based crypto firm.
CFTC and SEC’s Legal Actions Against Crypto Companies
Over the past couple of years, both the CFTC and the U.S. Securities and Exchange Commission (SEC) have launched investigations and filed lawsuits against numerous crypto exchanges, platforms, and individuals. Among the companies sued by the CFTC are FTX, Binance, and KuCoin, while the SEC has targeted entities like Binance, Terraform Labs, Coinbase, Kraken, and Bittrex. Recent developments include the SEC charging Ripple and concluding an investigation into Ethereum 2.0.
Jump Crypto’s Political Donation and Losses
News of the CFTC’s probe into Jump Crypto’s trading activities arose shortly after the firm’s $10 million donation to a U.S. political action committee aiming to elect crypto-friendly legislators. Jump Crypto has also experienced financial setbacks, including significant losses in connection with the collapse of Terra and FTX. Additionally, the firm has contributed to the super PAC Fairshake, which has received substantial support from industry players like Coinbase, Ripple, and Andreessen Horowitz.
