US federal commodities regulators are reportedly probing Chicago-based buying and selling agency Leap’s crypto enterprise.
Citing an individual conversant in the matter, Fortune experiences that the Commodity Futures Buying and selling Fee (CFTC) is making inquiries into the buying and selling and funding actions of Leap.
The corporate recognized for its algorithmic and high-frequency buying and selling methods launched its crypto division, Leap Crypto, in September 2021.
It will definitely turned an lively market maker and investor within the house, supporting crypto tasks such because the blockchain connectivity platform Wormhole, oracle community Pyth and Solana (SOL) validator shopper Firedancer.
However Leap turned implicated in hacks and failures. It was a high market maker of FTX trade and misplaced almost $300 million when the previous crypto empire collapsed in late 2022.
It was additionally embroiled within the controversy involving Terraform Labs, the corporate behind the failed TerraUSD stablecoin, over allegations that it secretly propped up Terra’s peg.
The U.S. Securities and Trade Fee (SEC) didn’t file costs in opposition to Leap when it sued Terraform and its founder Do Kwon, however the buying and selling agency has since scaled again on its crypto actions and even opted to not supply a spot Bitcoin (BTC) exchange-traded fund.
Fortune says the CFTC’s investigation into Leap’s involvement in crypto just isn’t proof of wrongdoing, albeit it isn’t but recognized if the regulatory company is mulling submitting costs in opposition to the corporate.
Do not Miss a Beat – Subscribe to get e mail alerts delivered on to your inbox
Examine Value Motion
Comply with us on X, Fb and Telegram
Surf The Each day Hodl Combine
Generated Picture: Midjourney
