Jump crypto, a division of the Jump Trading Group, has denied the rumors circulating online that it intends to wind down operations due to its exposure to FTX losses.
According to a tweet shared by the company on Nov 17, “Jump Crypto is not shutting down. We believe we're one of the most well-capitalized and liquid firms in crypto”, adding that, they were still in the business of “investing and trading.”
Given the rumors flying around, we want to debunk a few things.
Jump Crypto is not shutting down. We believe we’re one of the most well-capitalized and liquid firms in crypto.
We are still actively investing and trading, so if you’re looking for funding, please get in touch.
— jump_crypto (@jump_) November 17, 2022
In a tweet on Nov 12, the crypto company expressed shock at the unfolding events with FTX. However, it assured its clients that “Jump's exposure to FTX was managed in accordance with our risk framework and we remain well capitalized.”
1/ We, like all of you, were shocked by the events that unfolded over the past week. Jump's exposure to FTX was managed in accordance with our risk framework and we remain well capitalized.
— jump_crypto (@jump_) November 12, 2022
Despite Jump Crypto's denial, FTX’s collapse and the fallout from it has left the crypto community skeptical. Market analyst @knowerofmarkets shared in a tweet: “Jump crypto will literally tweet that they’re fine and aren’t shutting down but 157 reply guys and threadooooors will still claim they’re lying (because SBF said the same thing).”
Jump crypto will literally tweet that they’re fine and aren’t shutting down but 157 reply guys and threadooooors will still claim they’re lying (because SBF said the same thing)
Beginning to think people on twitter just want to watch the world burn and don’t care about crypto
— knower (@knowerofmarkets) November 17, 2022
Related: FTX fallout continues: BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits
Trust within the crypto community appears to have been compromised by the recent collapse of FTX and the subsequent events that have followed it. Before FTX filed for bankruptcy, former CEO Sam Bankman-Fried ‘SBF’ denied that FTX US had been financially impacted by the “shitshow” that was taking place with FTX. Previously, Bankman-Fried was insistent that FTX US was “100% liquid” and that “Every user could fully withdraw (modulo gas fees etc)." However, this was confirmed to be false once chapter 11 bankruptcy was filed which included FTX US.
Following the collapse of FTX, BlockFi found itself in a similar situation where it initially denied allegations of being in trouble due to being caught up in FTX’s collapse.
BlockFi went from denying rumors that the majority of its assets were held on FTX before the exchange’s collapse, to reportedly being on the verge of bankruptcy, only days after the founder and chief operating officer, Flori Marquez, assured users that all BlockFi products were “fully operational.”