Jump Trading transfers $46.44M in ETH amid sell-off, manipulation fears

Jump Trading, a market maker and trading firm, has moved 17,049 Ether worth approximately $46.44 million in preparation for an expected sell-off.

According to an X post by blockchain analyst Lookonchain, the $46.44 million Ether ( ETH ) claimed from the liquid staking protocol Lido has been “transferred out for sale.” 

The analyst also stated that Jump Trading currently holds a remaining 21,394 ETH worth approximately $68.58 million as the new wave of ETH sales reportedly begins.

Source: Lookonchain

Related: Jump likely shuttered development arm, not trading — 1000x co-host

Withdrawal from Lido

On Aug. 14, Jump Trading’s wallet address, cited by Lookonchain, began the Lido withdrawal process of its ETH holdings at 7:47 am UTC.

Since Aug. 9 at 3:09 pm UTC, the transactions recorded on Etherscan show the wallet has been dormant and now depicts a consistent pattern of ETH being moved out in batches.

Despite the concerns of a sale raised by Lookonchain, community response and Arkham Intelligence data reveal a different story entirely.

Related: Jump Trading sells another $29M Ether with $63M left to go — Is the bottom near?

Manipulation concerns

One X user commented that Jump Trading had transferred the ETH “back to their account,” while another raised concerns regarding manipulation and said the firm “just [wants] to buy more.”

According to Arkham data, the firm deposited 137.33 ETH worth $375,600 to Binance, 92,692 Tether ( USDT ) to Gate.io, 223,724 Circle USD ( USDC ) to Bybit, and 67,668 USDC to Coinbase.

These shifts in funds indicate preparation for liquidity provision for trading activities across the exchange and oppose the sell-off narrative suggested by Lookonchain.

Arkham Intelligence data revealing the latest Jump Trading transfers. Source: Arkham Intelligence

Related: Jump Trading’s Ether dump: Smart move or sign of trouble?

Jump Trading sell-off fears

On Aug. 5, a report released by QCP Group suggested that aggressive sell-offs of ETH “from Jump Trading and Paradigm VC” could trigger a market crash.

Lookonchain’s Aug. 5 X post reinforced the Singapore-based digital asset trading group report, citing Jump Trading’s sell-off of 83,000 Wrapped Lido Staked ETH (wstETH), worth $377 million.

The firm is reportedly being investigated by the United States Commodities and Futures Trading Commission (CFTC).

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