The Commodity Futures Trading Commission (CFTC) has taken legal action against FTX and former CEO Sam Bankman-Fried, Binance and its former CEO Changpeng Zhao, and KuCoin. Concurrently, the Securities and Exchange Commission (SEC) has subjected top exchanges and individuals to intense regulatory scrutiny, including Binance, Terraform Labs and former CEO Do Kwon, Coinbase, Kraken, and Bittrex. The SEC has also charged Ripple and top executives at the company, and has reportedly concluded its investigation into Ethereum 2.0, with details shared by Consensys.
In its case against Terraform Labs, the SEC implicated a “U.S. trading firm” for illegally propping up depegging stablecoin TerraUSD (UST) in 2021. The firm was identified as Jump Trading, and Terra suffered a major collapse in mid-2022, leading to a significant impact on the crypto market. Later that same year, Jump Crypto experienced a loss of nearly $300 million when FTX faced its own crisis.
Jump Crypto has contributed $15 million to the PAC, which has garnered multimillion-dollar donations from entities such as Coinbase, Ripple, and Andreessen Horowitz (a16z). The super PAC, Fairshake, has amassed considerable funds, totaling $169 million, with recent regulatory filings indicating that the entity still holds around $109 million.
