Has there been a manipulation of the price of some crypto-currencies ?

Funny question ? And yet, this is indeed what the us government seems to suspect. In fact, the department of justice of the United States has opened a criminal investigation on the manipulation of the price of some crypto-currencies. The Bitcoin in particular, and the Ethereum are directly targeted by this survey, which made a lot of noise across the Atlantic for a few days.

A us survey

The DOJ, namely the u.s. Justice department, has been working for several months in partnership with the CFTC, that is to say, the agency of regulation of the markets. This collaboration is not the result of chance, as the two entities are investigating unlawful conduct in connection with the crypto-markets.

Pixabay – Stux / Currently, the investigation continues.

It would seem that the investigation has permitted to observe practices known as ” spoofing “. It is a maneuver consisting in passing false orders. The goal is simply to induce investors to buy or sell the crypto-asset in question. It is definitely a manipulation of the market. And this is not the only practice that would have been depicted by the two authorities.

Comments amazing

In fact, the survey shows also the practice of ” wash trading “, that is to say that an investor has sold himself virtual currencies to increase the volume of trading in the market. Thus, other traders are automatically drawn to it. Again, this is a real manipulation totally illegal.

Pixabay – MakeSomedonesDay / authorities in The us think of unlawful manipulation, which would have had consequences on the price of crypto-currencies.

The investigation is ongoing and focuses primarily on two crypto-currencies which are other than the Bitcoin and Ethereum. It must be said that in the past few months, the values fluctuate very impressive, which has attracted the attention of the authorities. The movements are surprising, and could therefore have the origin of the maneuvers considered illegal.

The american authorities take this matter very seriously and intend to define if there is or not manipulation of the price of some crypto-currencies. To follow…

Source : NCC