Breaking: Jump Crypto President Kanav Kariya Stepping Down Amid CFTC Probe

Jump Crypto President Kanav Kariya announced in a June 24 X post that he is stepping down from his position at the Chicago-based company just days after news broke that the Commodity Futures Trading Commission (CFTC) launched a probe into the trading firm.

Jump Crypto President Kanav Kariya Stepping Down Amid CFTC Probe

“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,” Kariya wrote. “I’m leaving with a set of awesome relationships and unique, invaluable and shaping experiences.”

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. I’m leaving with a set of awesome relationships and unique, invaluable and shaping experiences. It’s…

— Kanav Kariya (@KanavKariya) June 24, 2024

Kariya said he would “stay engaged with the portfolio companies” he’s been involved with while taking “some time to process the unbelievably eventful few years” he has had to lead the trading giant.

“A heartfelt thanks to everyone who has been supportive to me on this journey,” Kariya continued. “I’m genuinely overwhelmed by the kindness and encouragement I’ve received along the way.”

CFTC Probe Launched On Jump Crypto After Setbacks

According to last week’s report from Fortune, the CFTC probe on Jump Crypto primarily focuses on its trading and investments across the cryptocurrency sector.

Founded in 2015, Jump Crypto has experienced several setbacks in recent years, particularly as the U.S. government notched up its regulation-by-enforcement approach to the digital sector.

The firm gained scrutiny after it was revealed in 2023 that it had made $1.28 billion before the crash of Terraform Lab’s Terra Luna ecosystem, of which Jump Crypto had a market-making arrangement.

Kariya served on the crypto company’s Luna Foundation Guard and was deposed as part of the United States Securities and Exchange Commission’s (SEC) case against Terraform Labs for misleading investors last fall, where he pleaded the fifth.

Terra Luna founder Do Kwon and the SEC settled the claims for $4.5 billion on June 12. Kwon is currently being held in prison in Montenegro as the United States and South Korea battle for his extradition.

The SEC and CFTC have been at the heart of digital asset regulation in the United States, most notably for their role in charging FTX with fraud following Sam Bankman-Fried’s $8 billion crypto fraud scheme.

According to Michael Lewis’ book “Going Infinite: The Rise and Fall of a New Tycoon,” Jump Crypto lost over $300 million when the SBF-led crypto exchange collapsed in November 2022.

At the time of article publication, the CFTC has yet to bring formal charges against Kariya and Jump Crypto.