Jump Trading Sells $481M wstETH as CFTC Investigates It Amidst Major Market Drop

• Jump Trading sold 83,000 $wstETH ($377M) since July 24, leaving 37,604 $wstETH ($104M) amid a 33% market decline.
• The CFTC is investigating Jump Trading, adding complexity to its crypto activities, though no wrongdoing is confirmed.
• Ethereum experienced a 24.11% drop in 24 hours, trading at $2,255, following significant sell-offs and market volatility.

Jump Trading is selling 120,695 $wstETH ($481M) and has sold 83,000 $wstETH ($377M) since July 24, leaving 37,604 $wstETH ($104M). Lookonchain reports this major sell-off. Following the sale, the market experienced a more than 33% decline.

The U.S. Commodity Futures Trading Commission (CFTC) is probing Jump Trading’s involvement in the cryptocurrency space, Fortune reported on Thursday, citing a person familiar with the matter. This investigation is not evidence of wrongdoing, and it could not be learned if the regulator is considering charges against the trading firm.

Market Reaction Post-July 24

The market began to fall after July 24, falling by more than 33%. The initial stability of Ethereum saw minor fluctuations around $2,914 USD. However, major drops occurred after 4 PM on August 4th and again around 4 AM on August 5th. At press time, Ethereum was trading at $2,221.39 and has dropped by 24.11% in the past 24 hours.

Source: CoinMarketCap

Jump Trading’s Crypto Involvement

The firm has also launched a business dedicated to exploring and researching blockchain technology. Despite the approval of spot Bitcoin exchange-traded funds earlier this year, regulators maintain a tough stance towards the industry. Major crypto executives have accused regulators of overreach and warned that heavy-handed approaches could prompt companies to move offshore.

CFTC Investigation

On June 20, reports emerged that the CFTC is investigating Jump Trading. This investigation does not imply wrongdoing, and it remains unclear if the regulator is considering charges. 

The 120,695 $wstETH ($481M) represents funds that Jump successfully countered from the Wormhole Exploiter and recovered. Jump Trading’s wstETH sell-off has coincided with a sharp market decline. The ongoing CFTC investigation adds to the complexities surrounding Jump Trading’s crypto activities.