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US Federal Prosecutor Investigating Possible Market Manipulation Involving FTX Subsidiary

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US Federal Prosecutor Investigating Possible Market Manipulation Involving FTX Subsidiary

On March 14, according to the source, the United States federal prosecutor in Manhattan is investigating the conversation between Jump, Jane Street and Alameda Research, a bankrupt FTX subsidiary, about the Telegram chat group that may rescue UST in May last year, and whether it involves possible market manipulation.

Bloomberg: US prosecutors are investigating the group chat records of Jump, Alameda and others related to the rescue of the destabilized currency UST in May last year

Analysis based on this information:


The United States federal prosecutor in Manhattan is investigating a conversation that occurred in May 2020 between Jump, Jane Street, and Alameda Research, a bankrupt FTX subsidiary, regarding the Telegram chat group that may rescue the UST. It is being investigated whether or not this conversation involves possible market manipulation.

Market manipulation is the act of artificially inflating or deflating the price of an asset for personal gain or to manipulate the market. In this case, the conversation between these three entities could indicate an attempt to manipulate the price of UST. It is important to note that UST stands for TerraUSD, which is a stablecoin pegged to the U.S. dollar. It is designed to maintain a stable value regardless of market fluctuations, which makes it an attractive option for traders.

There are several possible scenarios that could have occurred during the conversation between Jump, Jane Street, and Alameda Research. It is possible that they were discussing legitimate ways to rescue the UST, such as providing liquidity or market-making activities. However, it is also possible that they were discussing ways to manipulate the UST market to their advantage. This would be a violation of securities laws and could result in serious consequences for those involved.

It is worth noting that FTX has been involved in several controversies in the past. In 2020, the derivatives exchange faced criticism over its handling of the oil crash, which resulted in some traders losing millions of dollars. FTX also faced criticism for allowing traders to bet on the outcome of the 2020 U.S. presidential election. These controversies have raised concerns about the exchange’s commitment to fair trading practices.

In conclusion, the ongoing investigation by the federal prosecutor in Manhattan highlights the importance of fair trading practices in the cryptocurrency market. It is crucial for traders to follow securities laws and avoid engaging in activities that could be perceived as market manipulation. The outcome of this investigation could have far-reaching consequences for FTX and the broader cryptocurrency industry.

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