Jump Crypto denies closing due to FTX losses
Terrill Dicki Nov 17, 2022 19:26
Jump Crypto,FTX,BlockFi
The cryptocurrency division of the Jump Trading Group, known as Jump Crypto, has debunked rumors circulating on the internet that it could shut down as a result of FTX losses.
On November 17, the business said in a tweet that "Jump Crypto will not collapse. We believe that we are one of the crypto businesses that is both well-funded and highly liquid in the current market. Please take into consideration that I continue to engage in "investing and trading."
On November 12, the firm that deals in cryptocurrencies tweeted that it was surprised by the events surrounding FTX, but it informed its customers that "exposure to FTX was managed according to our risk plan and we remain well financed."
In spite of assurances made by Jump Crypto to the contrary, the cryptocurrency community continues to exercise extreme caution in the wake of the collapse of FTX and the ensuing repercussions of this event. Knower, a market expert, made the following statement in a tweet: "Jump crypto will genuinely tweet claiming they're okay and not shutting down, but 157 reply guys and threadooooors will argue that they're lying (because SBF stated the same thing)."
There seems to be less trust in the cryptocurrency community as a result of recent events, including the collapse of FTX and the events that followed. Sam "SBF" Bankman-Fried, who served as the CEO of FTX before the company declared bankruptcy, disputed that the "shitshow" that was FTX had any financial effect on FTX US before FTX went bankrupt. Previously, Bankman-Fried held to the position that "any user may completely withdraw (subject to petrol expenditures, etc.)" from FTX US. It became immediately apparent that this was not the case as soon as FTX Group, including FTX US, filed for Chapter 11 bankruptcy protection.
Following the collapse of FTX, BlockFi found itself in a similar circumstance and at first denied rumors of financial difficulties.
A few days after assuring customers that all BlockFi products were "totally functioning," founder and COO Flori Marquez allegedly said that the company was on the verge of filing for bankruptcy due to reports that the majority of its assets were kept on the defunct FTX market. This statement comes after Marquez had previously assured customers that all BlockFi products were "totally functioning."
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