U.S. Launches Criminal Probe into Bitcoin Price Manipulation

DooKey

DooKey

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The DoJ has opened up a criminal probe into possible manipulation of cryptocurrency prices. Apparently, the DoJ is concerned about fraud because they aren't sure exchanges are going after cheaters and there is a lack of regulation like those that govern stocks. Primary targets of the investigation are those techniques/people that trick others into buying or selling under false pretenses. It's about time is all I can say. Too many people are getting ripped off and the market needs to be a level playing field.

The illicit tactics that the Justice Department is looking into include spoofing and wash trading -- forms of cheating that regulators have spent years trying to root out of futures and equities markets, the people said. In spoofing, a trader submits a spate of orders and then cancels them once prices move in a desired direction. Wash trades involve a cheater trading with herself to give a false impression of market demand that lures other to dive in too.
 
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In other words, the same shit that happens (or happened in the past) in regular stocks and financial industries is happening in crypto? Color me shocked. Regulations just complicate the nature of crap that goes on, they don't prevent it. People just get more..... "creative" when there are regulations.
 
Azrak said:
In other words, the same shit that happens (or happened in the past) in regular stocks and financial industries is happening in crypto? Color me shocked. Regulations just complicate the nature of crap that goes on, they don't prevent it. People just get more..... "creative" when there are regulations.
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Well when you look at the distribution, they suspect the majority of bitcoin is held by a few key players. (Like under a dozen control over 1/2 of the bitcoins) It becomes very easy for them to manipulate the market then.
 
Its obvisous that there was price manipulation going on because of how volatile the crypto prices are. How can someone disagree with that, the Feds just want to find out who is making money so they can find them and stop them or tax the crap out of them to make 'em stop.
 
Just imagine all those poor saps that were openly providing their personal details for pump and dumps.... I foresee jail time.
 
The entire history of bitcoin involves manipulation, I thought that was obvious to anyone looking at it. Since they're not stocks though, what laws are being broke?
 
DigitalGriffin said:
Well when you look at the distribution, they suspect the majority of bitcoin is held by a few key players. (Like under a dozen control over 1/2 of the bitcoins) It becomes very easy for them to manipulate the market then.
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Congress allows insider trading, they should buy House seats.
 
Lets see.... JPM Chase / Wells Fargo (how low can Far GO?) commit massive multi-billion dollar fraud and get fined. Never go to jail. Ever. Seems legit.
 
the only manipulation I see is the major shareholders pumping and dumping.
The little guy always loses.
 
Everyone is just waiting for the law to say bitfinex is the reason bitcoin went to 20k. Its what everyone is thinking.
 
just wait until they come knocking at miner's doors because of tax evasion
 
And as usual, they could give a rat's behind about what it did to the tech industry and the price gouging that ensued there. Odd's are, they probably had already invested into stocks for the related companies.
 
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