Can't withstand CFTC investigation? After navigating the wormhole and Terra incident, Jump Crypto's leader resigns

The CEO of "Jump Crypto," a cryptocurrency subsidiary under the high-frequency trading giant Jump Trading, Kanav Kariya, publicly announced his resignation yesterday evening in a tweet, citing reasons believed to be related to an investigation by the U.S. Commodity Futures Trading Commission (CFTC) into the company's involvement in the cryptocurrency market.

Kanav Kariya Resigns

Amid an investigation by the CFTC, Kanav Kariya, former head of Jump Crypto, has released a statement announcing his resignation.

Reportedly, he was appointed as the head of Jump Crypto in 2021, coming from an internship at Jump Trading, when he was only 25 years old. (source)

In a tweet, Kariya wrote:

Today marks the end of my personal journey, it is my last day at Jump, a moment that weighs heavy on my heart but fills me with anticipation for the future.

He added, "I will continue to be involved with the investment companies I care about and hope to take some time to reflect on the incredible tumultuous years."

Looking Back at Jump Crypto's Turbulent Past

Jump Trading, a mysterious high-frequency trading company, launched its subsidiary Jump Crypto in September 2021 to venture openly into the cryptocurrency space.

Wall Street's mysterious high-frequency trading giant Jump Trading launches a crypto subsidiary, CEO reveals: involvement in crypto for six years

However, since its establishment, Jump Crypto has faced numerous troubles.

Wormhole Incident

In February 2022, the cross-chain bridge Wormhole, funded by Jump Crypto, was hacked, resulting in the minting and redemption of approximately 120,000 wETH, with losses exceeding $300 million.

The company took responsibility for this 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 Incident

In May of the same year: As a major investor in Terraform Labs, Jump suffered significant losses as the Terra ecosystem collapsed. It also faced criminal charges related to allegations of colluding with Terra founder Do Kwon to manipulate the price of UST, allegedly profiting over $1.28 billion.

Jump Trading accused of manipulating UST value, acquiring LUNA at very low prices, faces class-action lawsuit

Parent Company Jump Trading Hit Hard by FTX Collapse

In November of the same year, the collapse of FTX sent shockwaves through the entire crypto industry, and concerns about Jump Crypto's exposure to FTX began to be widely discussed.

The company tweeted to deny rumors of an imminent business shutdown:

We believe we are one of the most financially robust and liquid companies in the cryptocurrency space, and we continue to engage in "investment and trading" activities.

However, its parent company Jump Trading, as an institutional investor in FTX, also incurred losses of up to $280 million in this event.

FTX event anniversary: Crypto world VCs hit hard, multiple banks go bankrupt in succession

CFTC Investigation Underway

A few days ago, Fortune reported that the CFTC is investigating Jump Crypto's involvement in cryptocurrencies.

It is reported that the investigation includes the company's trading activities related to the Terra investor lawsuit to determine if there has been any misconduct.