U.S. CFTC launches investigation into market maker 'Jump Crypto'"
The U.S. Commodity Futures Trading Commission (CFTC) has launched an investigation into cryptocurrency market maker Jump Crypto, Fortune reported, citing multiple sources. "The CFTC is reportedly looking broadly at Jump Crypto's trading activities, not at specific allegations," the media outlet said.
In the past, Jump Crypto was first recognized as a major market maker on FTX after it was found to have lost over $300 million in the FTX collapse. JumpCrypto was later accused of manipulating the price of Tera's (LUNC, formerly LUNA) algorithmic stablecoin TeraUSD (USTC, formerly UST) to make $1.28 billion in profits. In its indictment, the SEC alleged that "In 2019, Terraform Labs lent JumpCrypto 30 million LUNA, and in September 2020, Terra lent an additional 65 million LUNA. While Terra claims that the transactions were intended to improve the liquidity of LUNA, JumpCrypto was consistently selling LUNA on the market. Both JumpCrypto and the CFTC declined to comment on the investigation."
