As bitcoin nosedives, regulators said to be investigating whether it was propped up illegally.

in crypto-news •  6 years ago  (edited)

This can Open A Pandora Box Either in Support or Against Cryptocurrency.......

  • The U.S. Justice Department is reportedly looking into whether traders used another cryptocurrency called tether to bid up bitcoin prices during its 1,300 percent rally last year.
  • Federal prosecutors launched a broader criminal probe into cryptocurrencies earlier this year but now suspect that traders on crypto exchange Bitfinex may have been moving prices illegally, Bloomberg reported, citing three people familiar with the matter.
  • The news comes amidst bitcoin’s 16 percent price drop on Tuesday.

This can be the “perfect excuse” to either BAN or LEGALIZE Cryptocurrency in the near future.

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  ·  6 years ago Reveal Comment

The issue is that cryptocurrencies have no built in protections against pump and dump schemes....

What has any such protections?

I don't think that the apparent fraud of teether is simply pump and dump, it shares certain characteristics to a Ponzi scheme which is what I think the fraud resembled if indeed that's what happened.

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Yikes I think this is lose - lose

Yeah. It stinks 😤

Good!

Well the manipulators will now fear doing that

As usual they don't want to let a good crisis go to waste. A dip and successive rounds of legal assaults is just a front to get a foot in the door for regulations like what they did to the tech industry in early 2000s. We should e free to do our P2P transactions without the Mafia dropping into take a cut

The issue I think is Fraud, it seems that it was perpetrated by those in positions of trust/power in these exchanges through the scheme of Teether, indicative by the lack of transparency over how the coin is pegged to the dollar or minted. It might serve as a springboard for actual regulation of these exchanges yet it will be completely futile to affect dex, let alone bitcoin itself.

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