ump Trading, a major player in the financial world, faced significant losses in the FTX collapse. We delve into its ties with Robinhood and the regulatory challenges it currently encounters.
Michael Lewis’ book reveals Jump Trading’s staggering $300 million loss in the FTX collapse. Tai Mo Shan Limited, linked to Jump and once a vital market maker for Robinhood, saw 29% of its Q2 2021 revenue from transactions with Robinhood. Tai Mo Shan acted as a market maker, fulfilling user crypto trades for Robinhood, with Jump Trading handling orders. Coinbase Custody provided custody services.
Jump and Tai Mo Shan faced substantial losses due to FTX’s collapse. Their association with Robinhood appears to have ended in 2022. Jump also faced hefty expenses in rescuing the Wormhole crypto bridge post-hack in the same year.
Jump faces a lawsuit alleging market manipulation in Luna and Terra markets. SEC documents revealed Jump’s involvement in Luna loans from Terraform Labs and its role in “improving liquidity of Terra,” potentially generating $1.28 billion from Luna sales, though no wrongdoing has been alleged.
Amidst growing regulatory scrutiny, Jump Trading has scaled down its crypto activities.