Jump Crypto moved 17,576 Ethereum (ETH), valued at approximately $47 million, to exchanges such as Binance, OKX, Coinbase, Bybit, and Gate.io in the past 24 hours.
Blockchain analytics platform SpotOnChain revealed that, in the past ten days, Jump Crypto brought the total amount of Ether transferred to exchanges to $277 million.
[Update] Jump Trading moved another net amount of 17,576 $ETH ($46.78M) to CEX in the past 24 hours!
This solely came from their existing $ETH holding.
Their remaining 37.6K $wstETH ($101M) and 11.5K $STETH ($26.3M) still remain in their wallet and under the unstaking process… https://t.co/fNn4RKejgf pic.twitter.com/Koab3o8ybV
— Spot On Chain (@spotonchain) August 5, 2024
Jump Crypto is the cryptocurrency division of the Chicago-based proprietary trading firm Jump Trading.
The company’s liquidation of its digital assets has sent shockwaves through the crypto markets, exacerbating an already volatile environment.
Today, Bitcoin and top coins have fallen hard. To quantify, Bitcoin is down -25% in the last trading week while Ethereum and Solana are worse, posting 31% and 37% losses.
Read more: Is Crypto Dead? Not If Morgan Stanley Deliver Market Earthquake This Week
Jump Crypto Still Holds $706 Million In Crypto
Over the past ten days, Jump Crypto’s decision to transfer millions of dollars worth of ETH to various exchanges, leading to a sharp decline in crypto prices and raising questions about the firm’s future in the industry.
A Binance post said, Jump Trading recently redeemed $410 million worth of wstETH in batches and transferred it to centralized exchanges (CEX).
Since 25 July 2024, Jump Crypto redeemed 83,091 wrapped stETH (wstETH) worth $341 million into 97,600 stETH and unstaked 86,059 stETH ($274 million) from Lido Finance.
The firm then deposited a net amount of 72,213 ETH ($231 million) to various exchanges.
Currently, Jump Crypto holds almost $706 million in cryptocurrencies, including USDT, USDC, Bitcoin, and others.
Adam Cochran, VP of Operations at SBT Partners said, “Jump liquidating their crypto book into thin markets on a summer Sunday afternoon perfectly sums up why their crypto operation is such a mess.”
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CFTC Investigation On Jump Crypto
In June 2024, it was reported that the US Commodity Futures Trading Commission (CFTC) is investigating Jump Crypto.
Despite not being charged with any wrongdoing, Jump Crypto was named in the Securities and Exchange Commission’s (SEC) lawsuit against Terraform Labs. This added to the company’s regulatory scrutiny.
Meanwhile, Raoul Pal, CEO of Real Vision tweeted, “This big, sloppy range in the majors is really due to massive supply changing hands from last cycle (and longer ago) problems – FTX estate, Mt Gox, Germany, GBTC and now Jump, plus new project unlocks/tokens.”
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
