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Chicago-based buying and selling agency Leap Crypto is presently below investigation by the Commodity Futures Buying and selling Fee (CFTC), as reported by Fortune. The probe, which isn’t indicative of any misconduct, is analyzing the agency’s buying and selling and funding actions within the crypto sector.
This scrutiny follows a sequence of setbacks for Leap, together with its involvement in hacks and the collapse of main crypto tasks. Regardless of these challenges, Leap has decreased its crypto operations, spinning off tasks and withdrawing from the Bitcoin ETF race.
“The CFTC’s investigation into Leap’s crypto enterprise displays the newest probe by a federal company,” an individual with information of the matter acknowledged.
Each the CFTC and Leap have declined to touch upon the continued investigation.
Leap is famend for being one of many high gamers in high-frequency buying and selling, opening its crypto arm in 2021. The workforce is led by Kanav Kariya, and the position turned him into probably the most high-profile personalities within the blockchain business.
Notably, Leap turned a major investor in decentralized finance (DeFi) tasks, being one of many key buyers of the interoperability protocol Wormhole, which suffered a $326 million exploit in February 2022. Leap rapidly bailed the workforce, paying again affected customers in full.
Furthermore, Leap was one of many major market makers for FTX, and misplaced almost $300 million after the alternate collapsed in November 2022.
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