Kanav Kariya, CEO of "Jump Crypto", the encryption subsidiary of high-frequency trading giant Jump Trading, tweeted yesterday evening to disclose the news of his resignation to the public. The reason was alleged to be that the U.S. Commodity Futures Trading Commission (CFTC) was investigating the company. Participation in the Cryptocurrency Market.
Kanav Kariya
As the CFTC investigates, Kanav Kariya, the former head of Jump Crypto, issued a resignation statement at this time.
It is reported that he was appointed as the head of Jump Crypto from an intern at Jump Trading in 2021, when he was only 25 years old.
Kariya tweeted:
Today represents the end of my personal journey and is my last day at Jump. This moment makes me feel heavy inside and full of expectations for the future.
He added, "I will continue to participate in the investment companies that I care about most, and hope to take some time to reflect on the incredibly eventful past few years."
Looking back at Jump Crypto’s bumpy past
Jump Trading, a mysterious high-frequency trading company, launched its subsidiary Jump Crypto in September 2021 in an effort to open up to the cryptocurrency field.
(Jump Trading, the mysterious high-frequency trading giant on Wall Street, launched an encryption subsidiary. The CEO revealed: He has been involved in encryption for six years)
However, Jump Crypto’s troubles seem to have never been less since its inception.
Wormhole incident
In February 2022, Wormhole, a cross-chain bridge funded by Jump Crypto, was attacked by hackers. About 120,000 wETH was minted and exchanged, resulting in losses of more than $300 million.
In this regard, the company also took the responsibility and deposited an equivalent amount of ETH into the bridge.
(Bloomberg: Wormhole has separated from its parent company Jump Trading and will operate independently in the future)
Terraform Labs Events
May of the same year: As a major investor in Terraform Labs, Jump suffered huge losses as the Terra ecosystem collapsed, and faced criminal charges that the company collaborated with Terra founder Do Kwon to manipulate UST prices.
According to authorities, Jump made more than $1.28 billion in profit.
(Jump Trading is accused of manipulating the value of UST and obtaining LUNA at a super low price, and faces a class action lawsuit)
Parent company Jump Trading hit hard by FTX collapse
In November of the same year, the collapse of FTX spread to the entire encryption industry, and concerns about Jump Crypto’s exposure to FTX began to be widely discussed.
In response, the company tweeted to deny rumors that it was about to cease operations:
We believe we are one of the most well-capitalized and liquid companies in the cryptocurrency space, and we are still in the "investing and trading" business today.
However, its parent company Jump Trading, an institutional investor in FTX, also lost up to $280 million in this incident.
(Anniversary of the FTX Incident (3): All VCs in the crypto world were shot, and many banks went bankrupt one after another)
CFTC under investigation
A few days ago, Fortune reported that the CFTC was investigating Jump Crypto’s involvement in cryptocurrencies.
It is reported that the scope of the investigation involves the company’s trading activities in the Terra investor lawsuit, and a specific investigation into whether there is misconduct.
Is this article not worthy of investigation by the CFTC? After going through wormholes and Terra incidents, the person in charge of Jump Crypto resigned appeared first on Chain News ABMedia.
