Once a high-frequency trading giant at the center of attention, Jump Crypto has faded into silence amid a series of intense upheavals. Now, this once-dominant hidden force in on-chain liquidity is trying to return to the spotlight with a new identity as a "builder of crypto infrastructure."
Recently, Jump made its first high-profile statement, announcing a comprehensive transformation into a core driver of on-chain infrastructure, and rarely disclosing its progress in lobbying for U.S. cryptocurrency policy, attempting to rebuild market trust in the new crypto cycle through technological innovation and regulatory cooperation.
transformed into an infrastructure builder, participating for the first time in lobbying for U.S. crypto policy.
On June 20th, Jump Crypto, which has been low-key for a long time, rarely spoke out and officially announced its reintroduction to the world as a "builder of crypto infrastructure". This company, regarded as one of the largest participants in crypto trading, is transitioning from a behind-the-scenes trading giant to a core driver of on-chain infrastructure.
In a public statement released on the official website, Jump Crypto reflected that over the past few years, they have operated quietly but have never stopped building. The team has always focused on identifying and overcoming the core bottlenecks that restrict the performance and scalability of crypto systems. "We do not sit in an ivory tower and talk about the future ten years from now; we tackle the hardest problems first. History tells us: building itself will give rise to more building," wrote Jump.
Jump emphasizes its core contributions in multiple projects such as Pyth, Wormhole, Firedancer, and DoubleZero, stating that although these projects have different technical directions, they all originate from the technical limitations encountered by Jump in real on-chain transactions. It is precisely this "transaction-driven construction" approach that has allowed the Jump team to evolve from liquidity providers to key drivers of crypto infrastructure.
However, Jump has repeatedly emphasized in its statement that, despite playing a core contributor role in multiple infrastructure projects, it does not have control over these networks. "We firmly believe that the essence of decentralization is that no single entity has 'unilateral control'. Therefore, the protocols we build are not only open source, but even fully open source and can be freely forked. In our view, the methods of decentralization can be diverse (validators, token governance, etc.), but the core criterion remains: is there the ability to unilaterally modify the protocol?"
At the same time, Jump has also laid out security infrastructure, including its self-developed self-custody wallet operating platform, Cordial Systems, which can provide enterprise-level digital asset wallet solutions for Jump and multiple centralized exchanges; the internally incubated security team, Asymmetric Research, has assisted in recovering over $5 billion in potential risks and has handled more than 100 security incidents.
It is worth noting that Jump's high-profile statement this time is not only a "clarification" of its role but also reveals its first proactive involvement in advising regulatory policies. Over the past few decades, Jump's parent company, Jump Trading, has almost never appeared in the public policy arena. Last month, Jump Crypto submitted a policy opinion letter to the SEC, marking the first time in Jump Trading's history that the parent company has publicly expressed its stance on public policy, sharing their views on how U.S. securities laws should adapt to the digital asset era, and calling for the introduction of common-sense reforms to eliminate the regulatory ambiguity and uncertainty widely felt in the industry.
"Now is the best window period for reconstructing financial infrastructure and even the way organizations coordinate. It is not only the maturity of technology but also the shift in policy that has brought this industry to a critical turning point," Jump pointed out.
After experiencing multiple crises and significant injuries, it seeks to make a comeback after the US regulation has warmed up.
Jump Crypto was once the flagship force of Wall Street's quantitative legend Jump Trading in the crypto world, but after being embroiled in a series of controversies including the UST manipulation scandal, the FTX bankruptcy crisis, and the Wormhole hack, this high-frequency trading giant active on the crypto front faced a reputation crisis and financial pressure, ultimately choosing to gradually fade out of the industry's spotlight.
Jump's true entry into a reputation crisis began with the collapse of the Terra ecosystem in 2022. According to disclosures from the U.S. SEC, Jump, through its wholly-owned subsidiary Tai Mo Shan Limited, reached an agreement with Terraform Labs during the first decoupling of UST in May 2021, secretly using over $20 million of its own funds to purchase UST in an attempt to artificially stabilize its $1 peg. In exchange, Jump obtained a large-scale discounted subscription right for LUNA. This arrangement significantly enhanced the market's illusion of UST's self-repairing capabilities, misleading the public's judgment on the effectiveness of its algorithmic mechanism.
The SEC alleges that Jump acted as a statutory underwriter for LUNA tokens from January 2021 to May 2022, illegally distributing securities in the U.S. market without registration. Jump accumulated nearly $1.3 billion in profits through buying low and selling high. Ultimately, by the end of 2024, Jump reached a $123 million settlement with the SEC, revealing part of this mysterious trading giant's operations in the depths of the crypto market.
The crisis did not stop with Terra. In February 2022, the Wormhole protocol, developed by Certus One, a cross-chain bridge developer previously acquired by Jump, was hacked, resulting in a loss of up to $325 million, making it one of the largest security incidents in the crypto industry at the time. To maintain the protocol's usability and confidence, Jump chose to "dig into its own pockets" to fill the gap, investing $320 million to stabilize the market. Although this move restored short-term reputation, it also severely eroded Jump's own financial situation.
The collapse of FTX has further exacerbated Jump's financial black hole. As a significant market maker and strategic partner for FTX and its sister company Alameda Research, Jump was deeply involved in building liquidity on their platform and jointly made substantial bets on the Solana ecosystem, being one of the largest institutional participants in the Solana ecosystem. However, with the sudden collapse of FTX, the price of Solana projects plummeted drastically, leading to the immediate disintegration of the ecosystem and further tightening Jump's balance sheet. According to disclosures by Michael Lewis in his book "Going Infinite," Jump lost as much as $206 million in the FTX collapse, and its subsidiary Tai Mo Shan also lost over $75 million, totaling more than $300 million.
Facing multiple blows, tightening US regulations, and the arrival of the crypto winter, Jump Crypto quickly contracted its operations, began laying off staff, scaled back its venture capital investments, and strategically retreated from the US market, gradually fading from the public eye of the crypto community. In the second half of 2024, Jump further sold off a large amount of its holdings in mainstream assets such as ETH, USDC, and USDT, which sparked speculation about its complete withdrawal from the crypto market.
Until March of this year, as U.S. regulations became clearer, the missing "whale" showed signs of a restart. According to CoinDesk citing informed sources, Jump is working to restore its U.S. cryptocurrency operations to full capacity. Although Jump has maintained digital asset trading and market-making activities in other regions around the world, cryptocurrency trading volume in the U.S. is currently accelerating. Jump plans to hire a group of cryptocurrency engineers and will begin to fill positions related to U.S. policy and government relations in due course.
It is worth noting that, from public information, Jump has begun to reshape its cryptocurrency venture capital landscape this year. From January to date, Jump has participated in the financing of at least six cryptocurrency projects, including various infrastructure projects such as Humanity Protocol, Momentum, Securitize, and SOON. This marks Jump's first large-scale return to public investment after more than a year since October 2024, and also indicates its determination to transition strategically towards on-chain infrastructure builders.
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From encryption quantitative giants to infrastructure hermits, Jump Crypto's "atonement-style" transformation.
Author: Nancy, PANews
Once a high-frequency trading giant at the center of attention, Jump Crypto has faded into silence amid a series of intense upheavals. Now, this once-dominant hidden force in on-chain liquidity is trying to return to the spotlight with a new identity as a "builder of crypto infrastructure."
Recently, Jump made its first high-profile statement, announcing a comprehensive transformation into a core driver of on-chain infrastructure, and rarely disclosing its progress in lobbying for U.S. cryptocurrency policy, attempting to rebuild market trust in the new crypto cycle through technological innovation and regulatory cooperation.
transformed into an infrastructure builder, participating for the first time in lobbying for U.S. crypto policy.
On June 20th, Jump Crypto, which has been low-key for a long time, rarely spoke out and officially announced its reintroduction to the world as a "builder of crypto infrastructure". This company, regarded as one of the largest participants in crypto trading, is transitioning from a behind-the-scenes trading giant to a core driver of on-chain infrastructure.
In a public statement released on the official website, Jump Crypto reflected that over the past few years, they have operated quietly but have never stopped building. The team has always focused on identifying and overcoming the core bottlenecks that restrict the performance and scalability of crypto systems. "We do not sit in an ivory tower and talk about the future ten years from now; we tackle the hardest problems first. History tells us: building itself will give rise to more building," wrote Jump.
Jump emphasizes its core contributions in multiple projects such as Pyth, Wormhole, Firedancer, and DoubleZero, stating that although these projects have different technical directions, they all originate from the technical limitations encountered by Jump in real on-chain transactions. It is precisely this "transaction-driven construction" approach that has allowed the Jump team to evolve from liquidity providers to key drivers of crypto infrastructure.
However, Jump has repeatedly emphasized in its statement that, despite playing a core contributor role in multiple infrastructure projects, it does not have control over these networks. "We firmly believe that the essence of decentralization is that no single entity has 'unilateral control'. Therefore, the protocols we build are not only open source, but even fully open source and can be freely forked. In our view, the methods of decentralization can be diverse (validators, token governance, etc.), but the core criterion remains: is there the ability to unilaterally modify the protocol?"
At the same time, Jump has also laid out security infrastructure, including its self-developed self-custody wallet operating platform, Cordial Systems, which can provide enterprise-level digital asset wallet solutions for Jump and multiple centralized exchanges; the internally incubated security team, Asymmetric Research, has assisted in recovering over $5 billion in potential risks and has handled more than 100 security incidents.
It is worth noting that Jump's high-profile statement this time is not only a "clarification" of its role but also reveals its first proactive involvement in advising regulatory policies. Over the past few decades, Jump's parent company, Jump Trading, has almost never appeared in the public policy arena. Last month, Jump Crypto submitted a policy opinion letter to the SEC, marking the first time in Jump Trading's history that the parent company has publicly expressed its stance on public policy, sharing their views on how U.S. securities laws should adapt to the digital asset era, and calling for the introduction of common-sense reforms to eliminate the regulatory ambiguity and uncertainty widely felt in the industry.
"Now is the best window period for reconstructing financial infrastructure and even the way organizations coordinate. It is not only the maturity of technology but also the shift in policy that has brought this industry to a critical turning point," Jump pointed out.
After experiencing multiple crises and significant injuries, it seeks to make a comeback after the US regulation has warmed up.
Jump Crypto was once the flagship force of Wall Street's quantitative legend Jump Trading in the crypto world, but after being embroiled in a series of controversies including the UST manipulation scandal, the FTX bankruptcy crisis, and the Wormhole hack, this high-frequency trading giant active on the crypto front faced a reputation crisis and financial pressure, ultimately choosing to gradually fade out of the industry's spotlight.
Jump's true entry into a reputation crisis began with the collapse of the Terra ecosystem in 2022. According to disclosures from the U.S. SEC, Jump, through its wholly-owned subsidiary Tai Mo Shan Limited, reached an agreement with Terraform Labs during the first decoupling of UST in May 2021, secretly using over $20 million of its own funds to purchase UST in an attempt to artificially stabilize its $1 peg. In exchange, Jump obtained a large-scale discounted subscription right for LUNA. This arrangement significantly enhanced the market's illusion of UST's self-repairing capabilities, misleading the public's judgment on the effectiveness of its algorithmic mechanism.
The SEC alleges that Jump acted as a statutory underwriter for LUNA tokens from January 2021 to May 2022, illegally distributing securities in the U.S. market without registration. Jump accumulated nearly $1.3 billion in profits through buying low and selling high. Ultimately, by the end of 2024, Jump reached a $123 million settlement with the SEC, revealing part of this mysterious trading giant's operations in the depths of the crypto market.
The crisis did not stop with Terra. In February 2022, the Wormhole protocol, developed by Certus One, a cross-chain bridge developer previously acquired by Jump, was hacked, resulting in a loss of up to $325 million, making it one of the largest security incidents in the crypto industry at the time. To maintain the protocol's usability and confidence, Jump chose to "dig into its own pockets" to fill the gap, investing $320 million to stabilize the market. Although this move restored short-term reputation, it also severely eroded Jump's own financial situation.
The collapse of FTX has further exacerbated Jump's financial black hole. As a significant market maker and strategic partner for FTX and its sister company Alameda Research, Jump was deeply involved in building liquidity on their platform and jointly made substantial bets on the Solana ecosystem, being one of the largest institutional participants in the Solana ecosystem. However, with the sudden collapse of FTX, the price of Solana projects plummeted drastically, leading to the immediate disintegration of the ecosystem and further tightening Jump's balance sheet. According to disclosures by Michael Lewis in his book "Going Infinite," Jump lost as much as $206 million in the FTX collapse, and its subsidiary Tai Mo Shan also lost over $75 million, totaling more than $300 million.
Facing multiple blows, tightening US regulations, and the arrival of the crypto winter, Jump Crypto quickly contracted its operations, began laying off staff, scaled back its venture capital investments, and strategically retreated from the US market, gradually fading from the public eye of the crypto community. In the second half of 2024, Jump further sold off a large amount of its holdings in mainstream assets such as ETH, USDC, and USDT, which sparked speculation about its complete withdrawal from the crypto market.
Until March of this year, as U.S. regulations became clearer, the missing "whale" showed signs of a restart. According to CoinDesk citing informed sources, Jump is working to restore its U.S. cryptocurrency operations to full capacity. Although Jump has maintained digital asset trading and market-making activities in other regions around the world, cryptocurrency trading volume in the U.S. is currently accelerating. Jump plans to hire a group of cryptocurrency engineers and will begin to fill positions related to U.S. policy and government relations in due course.
It is worth noting that, from public information, Jump has begun to reshape its cryptocurrency venture capital landscape this year. From January to date, Jump has participated in the financing of at least six cryptocurrency projects, including various infrastructure projects such as Humanity Protocol, Momentum, Securitize, and SOON. This marks Jump's first large-scale return to public investment after more than a year since October 2024, and also indicates its determination to transition strategically towards on-chain infrastructure builders.