Wormhole Splits From Jump Trading Post-$320M Hack to Forge Independent Path

According to reports from Bloomberg, Wormhole, a leading cross-chain protocol, has officially separated from Jump Trading and will now operate as an independent entity. This separation has resulted in the departure of key personnel like CEO Saeed Badreg and COO Anthony Ramirez. 

Wormhole’s history includes a major security breach in 2022 where approximately $320 million was stolen, making it one of the biggest decentralized finance (DeFi) hacks. In response, Jump Crypto, the crypto division of Jump Trading, stepped in to replace the lost funds, primarily 120,000 ETH

In February 2023, Jump Crypto successfully recovered the stolen funds, partly thanks to assistance from Oasis enforcing a UK court order to retrieve assets linked to the hack. Prior to the split, Jump Trading had acquired Wormhole through its 2021 purchase of Certus One.

Meanwhile, Jump Crypto’s activities have not been without controversy. President Kanav Kariya exercised his Fifth Amendment rights multiple times during an SEC deposition against Terraform Labs and Do Kwon. A class-action lawsuit has also accused Jump of earning $1.3 billion through alleged manipulation of Terra, though these claims remain legally unproven.

The separation enables both Wormhole and Jump Trading to enter new chapters. For Wormhole, it’s an opportunity to redefine itself and potentially improve security post-hack. For Jump Trading, it could be a strategic move to streamline amid growing legal scrutiny. The split formally removes Wormhole from Jump Trading’s crypto portfolio.

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2023-11-18 16:52