The US Commodity Futures Trading Commission (CFTC) has launched an investigation into Jump Crypto for unspecified reasons, as reported by Forbes on June 20, citing sources familiar with the matter.

The federal agency is reportedly scrutinizing Jump Crypto's activities in the cryptocurrency sector, although this inquiry does not imply any wrongdoing.

Sources informed Forbes that:

"The CFTC's investigation into Jump's crypto operations marks the latest federal agency probe."

As of the time of reporting, neither the CFTC nor Jump Crypto has responded to requests for comment on the ongoing investigation or issued any public statements about it.

This investigation is part of a broader regulatory crackdown on the cryptocurrency industry by US authorities. In 2023, the CFTC focused a significant portion of its enforcement efforts on crypto firms.

Jump Crypto, which established its crypto division in 2021, has faced various challenges, including involvement in major hacks and the collapse of significant crypto projects. In response, the firm has downscaled operations, spun off projects, and withdrawn from pursuing a Bitcoin ETF.

Under the leadership of Kanav Kariya, Jump Crypto has been actively involved in the DeFi sector, notably investing in the Wormhole interoperability protocol. Following a $326 million exploit of Wormhole in February 2022, Jump Crypto fully reimbursed affected users for their losses.

Jump Crypto also suffered substantial losses as a primary market maker for the FTX crypto exchange, which collapsed in November 2022, resulting in nearly $300 million in losses.

The firm's involvement with Terra LUNA led to its submission of confidential information to the SEC during the watchdog's investigation into Terraform Labs.

Despite these setbacks, Jump Crypto remains a prominent entity in the cryptocurrency industry. The potential impact of the CFTC's investigation on the firm's operations remains uncertain pending further public disclosures.