Jump Crypto denies rumors that it intends to wind down due to FTX losses

Jump crypto, a division of the Jump Trading Group, has denied the rumors circulating on-line that it intends to wind down operations due to its publicity to FTX losses. 

According to a tweet shared by the corporate on Nov 17, “Jump Crypto will not be shutting down. We imagine we’re one of the crucial well-capitalized and liquid companies in crypto”, including that, they had been nonetheless within the enterprise of “investing and buying and selling.”

In a tweet on Nov 12, the crypto firm expressed shock on the unfolding occasions with FTX. However, it assured its shoppers that “Jump’s publicity to FTX was managed in accordance with our danger framework and we stay nicely capitalized.”

Despite Jump Crypto’s denial, FTX’s collapse and the fallout from it has left the crypto group skeptical. Market analyst @knowerofmarkets shared in a tweet: “Jump crypto will actually tweet that they’re effective and aren’t shutting down however 157 reply guys and threadooooors will nonetheless declare they’re mendacity (as a result of SBF mentioned the identical factor).”

Related: FTX fallout continues: BlockFi reportedly mulling chapter, SALT pauses withdrawals and deposits

Trust throughout the crypto group seems to have been compromised by the current collapse of FTX and the following occasions that have adopted it. Before FTX filed for chapter, former CEO Sam Bankman-Fried ‘SBF’ denied that FTX US had been financially impacted by the “shitshow” that was happening with FTX. Previously, Bankman-Fried was insistent that FTX US was “100% liquid” and that “Every person may absolutely withdraw (modulo fuel charges and so forth).” However, this was confirmed to be false as soon as chapter 11 chapter was filed which included FTX US.

Following the collapse of FTX, BlockFi discovered itself in an analogous state of affairs the place it initially denied allegations of being in hassle due to being caught up in FTX’s collapse.

BlockFi went from denying rumors that nearly all of its property had been held on FTX earlier than the change’s collapse, to reportedly being on the verge of chapter, solely days after the founder and chief working officer, Flori Marquez, assured customers that all BlockFi merchandise had been “absolutely operational.”