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Unraveling FTX's Downfall: Michael Lewis Reveals Jump Trading's $300M Loss in 'Going Infinite

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Oct 5, 2023 at 08:22 am

In Michael Lewis' latest book "Going Infinite," it's revealed that Jump Trading, a prominent player in the trading sphere, suffered substantial losses in the collapse of FTX, a cryptocurrency exchange led by Sam Bankman-Fried.

According to documents disclosed by Constance Wang, FTX's former Chief Operating Officer, Jump Trading emerged as one of the leading creditors, with losses nearing the $300 million mark. The book sheds light on Jump's position among FTX's top 50 accounts, whose owners encountered difficulties in withdrawing their funds from the exchange. The losses amounted to $206 million for Jump Trading and over $75 million for its affiliated trading entity, Tai Mo Shan Ltd.

Despite attempts to reach out for comments, a spokesperson from Jump responded with a succinct "no comment" when contacted by Bitsday.

If the figures hold true, this revelation underscores the significant financial hit that Jump Trading endured as a result of FTX's collapse in November. The exchange filed for bankruptcy, disclosing that its top 50 non-insider creditors were collectively owed $3.1 billion, with the largest single claim amounting to $226 million.

Jump Trading was also deeply entangled in the ill-fated Terra blockchain project. The collapse of Terra's TerraUSD stablecoin and native token LUNA in May 2022 marked the onset of a challenging bear market for the cryptocurrency industry.

Reports earlier in the year indicated that Jump was scaling back its involvement in U.S. crypto trading. Additionally, there were reports from Bitsday regarding the termination of the partnership between trading platform Robinhood and Jump.

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