Advertisement
UK markets open in 5 hours 21 minutes
  • NIKKEI 225

    38,062.85
    -1,531.55 (-3.87%)
     
  • HANG SENG

    17,260.83
    -50.22 (-0.29%)
     
  • CRUDE OIL

    77.27
    -0.32 (-0.41%)
     
  • GOLD FUTURES

    2,387.50
    -28.20 (-1.17%)
     
  • DOW

    39,853.87
    -504.23 (-1.25%)
     
  • Bitcoin GBP

    49,979.32
    -1,185.86 (-2.32%)
     
  • CMC Crypto 200

    1,316.53
    -49.36 (-3.61%)
     
  • NASDAQ Composite

    17,342.41
    -654.99 (-3.64%)
     
  • UK FTSE All Share

    4,468.59
    -10.90 (-0.24%)
     

Crypto Jump president jumps ship

Kanav Kariya
Kanav Kariya

Each day, Coinrule will run through the state of the digital assets market for Blockbeat, your home for news, analysis, opinion and commentary on blockchain and digital assets.

Kanav Kariya, president of Jump Crypto, has left the company. This news follows the U.S. Commodity Futures Trading Commission (CFTC) starting an investigation into Jump Trading’s crypto activities last week, putting a spotlight on Jump and its role in the crypto market.

Jump Crypto, part of the Chicago-based Jump Trading Hedge Fund and market maker, launched in 2021. It quickly became a key player in digital assets trading. Jump either invested in or its alumni founded high-profile Blockchain projects such as Monad, Wormhole, Pyth, and the new Solana client Firedancer. Projects that Jump Crypto invested in have a combined market cap of over $13 billion. However, the firm also faced major problems. In early 2022, the Wormhole bridge was hacked, resulting in a $300 million loss, which Jump had to cover.

Kanav Kariya, president of Jump Crypto, has left the company.
Kanav Kariya, president of Jump Crypto, has left the company.

The company was also involved in the Terra/Luna project, which famously collapsed in 2022, causing significant financial loss. Court filings by the SEC showed that Jump Trading secretly supported TerraUSD (UST) by buying 62 million tokens to restore its peg to the dollar in May 2021. This action helped Terraform Labs’ CEO, Do Kwon, claim the stablecoin’s algorithm could self-heal. In return, Jump made $1.28 billion by getting Luna tokens at a deep discount, but left many investors facing significant losses when Terra eventually collapsed.

Kariya’s resignation, in the light of the CFTC investigation, could add to the firm’s challenges. The scrutiny comes at a time of heightened regulatory pressure from the SEC, but also many defeats that the SEC had to face. The U.S. Congress recently approved a comprehensive crypto regulatory bill known as FIT21. The bill currently awaits review in the Senate. In light of these political developments, the CFTC’s investigation and Kariya’s exit are significant for the crypto industry. The details of the investigation and potential charges are still unknown. The industry will be watching closely to see how Jump Crypto handles these challenges.