Breaking News: President Kanav Kariya Resigns from Jump Crypto Amid CFTC Investigation
In a surprising turn of events, President Kanav Kariya has announced his resignation from Jump Crypto, the Chicago-based trading firm. This comes shortly after news broke that the Commodity Futures Trading Commission (CFTC) has launched an investigation into the company’s trading activities.
In a heartfelt post on June 24, Kariya expressed mixed emotions about leaving his position at Jump. He mentioned that he is grateful for the incredible relationships and invaluable experiences he has gained during his time with the company. While stepping down, Kariya assures his continued engagement with the portfolio companies he has been involved in. He also mentioned his intention to take some time to reflect on the eventful years he has spent leading the trading giant.
Kariya took the opportunity to express his gratitude to everyone who has supported him throughout his journey. He expressed his overwhelming appreciation for the kindness and encouragement he has received along the way.
The CFTC probe into Jump Crypto primarily focuses on the company’s trading and investments in the cryptocurrency sector. Jump Crypto, founded in 2015, has faced several setbacks in recent years due to increased government regulation in the digital sector.
One notable setback for the company was the revelation in 2023 that it had made $1.28 billion prior to the crash of Terraform Lab’s Terra Luna ecosystem. Jump Crypto had a market-making arrangement with Terraform Lab, which drew attention and scrutiny.
Kariya’s involvement with Terra Luna’s Luna Foundation Guard led to his deposition in the United States Securities and Exchange Commission’s (SEC) case against Terraform Labs for misleading investors. During the case, Kariya pleaded the fifth amendment. The case was settled on June 12, with Terra Luna founder Do Kwon and the SEC reaching a settlement of $4.5 billion. Kwon is currently in prison in Montenegro as the United States and South Korea negotiate his extradition.
The SEC and CFTC have been at the forefront of digital asset regulation in the United States. They made headlines for their involvement in charging FTX with fraud following Sam Bankman-Fried’s $8 billion crypto fraud scheme.
In November 2022, Jump Crypto suffered a loss of over $300 million when the SBF-led crypto exchange collapsed, as detailed in Michael Lewis’ book “Going Infinite: The Rise and Fall of a New Tycoon.”
As of now, the CFTC has not yet filed formal charges against Kariya and Jump Crypto.
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