Jump Trading, Wormhole Part Ways Amid Tough Crypto Market: Bloomberg
Although Jump has been scaling back its crypto-related operations, the reason for the business' parting of ways remains unclear, Bloomberg reported.
Nov 17, 2023 at 6:57 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/UCMUJE3K6FCJRH5TZO2BS2INSM.jpg)
Jump Crypto President Kanav Kariya (Danny Nelson)
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Jump Trading Group has broken up with Wormhole, a crypto project belonging to its crypto investing arm, as it continues to pull back from the volatile digital-assets market, Bloomberg reported Friday.
Several high-ranking Wormhole employees, including the project's CEO and COO, have left Jump to "run Wormhole as an independent entity," the publication reported, citing people familiar with the matter. The parting of ways comes less than two years after Jump poured $320 million into Wormhole after the inter-blockchain messaging platform suffered a massive hack.
It remains unclear whether Jump Trading ordered the spinoff or not. The number of employees who departed the trading firm due to the separation also remains unclear.
A Jump spokesperson declined CoinDesk's request for comment.
Wormhole's spinoff is the latest business breakup to kneecap Jump's shrinking crypto division. In early July, Jump and Robinhood ended their business partnership, a CoinDesk report revealed.
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Elizabeth Napolitano is a news reporter at CoinDesk.
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