Jump Crypto, a division of the Jump Trading Group, has denied\u00a0 rumors circulating online that it intends to wind down operations due to its exposure to FTX losses.\u00a0<\/p>\n
According to a tweet shared by the company on Nov. 17, \u201cJump Crypto is not shutting down. We believe we\u2019re one of the most well-capitalized and liquid firms in crypto.\u201d adding that i still in the business of \u201cinvesting and trading.\u201d <\/p>\n
In a tweet on Nov. 12, the crypto company expressed shock at the unfolding events with FTX and assured its clients that its \u201cexposure to FTX was managed in accordance with our risk framework and we remain well capitalized.\u201d <\/p>\n
Despite Jump Crypto\u2019s denial, FTX\u2019s collapse and the fallout from it have left the crypto community skeptical. Market analyst Knower shared in a tweet: \u201cJump crypto will literally tweet that they\u2019re fine and aren\u2019t shutting down but 157 reply guys and threadooooors will still claim they\u2019re lying (because SBF said the same thing).\u201d <\/p>\n
Related:\u00a0<\/em><\/strong>FTX fallout continues: BlockFi reportedly mulling bankruptcy, SALT pauses withdrawals and deposits<\/em><\/strong><\/p>\n Trust within the crypto community appears to have been compromised by the recent collapse of FTX and the subsequent events that have followed it. Before FTX filed for bankruptcy, former CEO Sam \u201cSBF\u201d Bankman-Fried denied that FTX US had been financially impacted by the \u201cshitshow\u201d that was taking place with FTX. Previously, Bankman-Fried was insistent that FTX US was \u201c100% liquid\u201d and that \u201cevery user could fully withdraw (modulo gas fees etc).\u201d However, this was confirmed to be false once FTX Group filed for Chapter 11\u00a0bankruptcy\u00a0and FTX US was included.<\/p>\n Following the collapse of FTX, BlockFi found itself in a similar situation, initially denyin allegations of being in trouble due to being caught up in FTX\u2019s collapse.<\/p>\n BlockFi went from denying rumors that the majority of its assets were held on FTX before the exchange\u2019s collapse to reportedly being on the verge of bankruptcy, only days after its founder and chief operating officer, Flori Marquez, assured users that all BlockFi products were \u201cfully operational.\u201d<\/p>\n