US federal commodities regulators are reportedly probing Chicago-based buying and selling agency Bounce’s crypto enterprise.
Citing an individual accustomed to 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 Bounce.
The corporate recognized for its algorithmic and high-frequency buying and selling methods launched its crypto division, Bounce Crypto, in September 2021.
It will definitely grew to become 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 consumer Firedancer.
However Bounce grew to become implicated in hacks and failures. It was a prime 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 prices towards Bounce 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 provide a spot Bitcoin (BTC) exchange-traded fund.
Fortune says the CFTC’s investigation into Bounce’s involvement in crypto just isn’t proof of wrongdoing, albeit it’s not but recognized if the regulatory company is mulling submitting prices towards the corporate.
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