Breaking: Kanav Kariya, President of Jump Crypto, to Step Down Amid CFTC Investigation
By Julia Smith
Updated: June 24, 2024, 13:59 EDT
In a post on X on June 24, Kanav Kariya, President of Jump Crypto, announced his resignation from the Chicago-based company. This comes shortly after news broke about the Commodity Futures Trading Commission (CFTC) launching an investigation into the trading firm.
Kariya expressed mixed emotions about leaving his position at Jump, stating, “Today marks the end of an incredible personal journey for me. It’s my last day at Jump, a moment I’m receiving with both a heavy heart and great excitement about the road ahead.” He also expressed gratitude for the relationships and experiences he gained during his time at the company.
While stepping down from his role, Kariya assured that he plans to stay involved with the portfolio companies he has been working with. He also mentioned taking some time to reflect on the eventful years he spent leading the trading giant.
Kariya extended his thanks to everyone who has supported him throughout his journey, acknowledging the kindness and encouragement he received along the way.
The CFTC investigation into Jump Crypto primarily focuses on the firm’s trading and investments in the cryptocurrency sector, according to a report from Fortune last week. Jump Crypto, founded in 2015, has faced various challenges in recent years, especially with increased government regulations in the digital sector.
The company faced scrutiny in 2023 when it was revealed 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, leading to further investigation and a deposition from Kariya as part of the SEC’s case against Terraform Labs for misleading investors.
Terra Luna founder Do Kwon and the SEC settled the claims for $4.5 billion on June 12. Kwon is currently in prison in Montenegro, and the United States and South Korea are in a battle for his extradition.
The SEC and CFTC have played significant roles in regulating digital assets in the United States, particularly in their actions against FTX and its founder Sam Bankman-Fried for a $8 billion crypto fraud scheme.
According to Michael Lewis’ book “Going Infinite: The Rise and Fall of a New Tycoon,” Jump Crypto suffered losses of over $300 million when the SBF-led crypto exchange collapsed in November 2022.
As of now, the CFTC has not yet filed formal charges against Kariya or Jump Crypto.
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