Justice Department Investigates Crypto Market Manipulation

in cryptocurrencies •  7 years ago 

Traders may be manipulating the price of digital currencies, including bitcoin.

Bloomberg reported that the Justice Department has

launched a criminal probe to determine whether traders

are engaging in illegal practices, such as spoofing and wash trading.

In spoofing, cheaters flood the market with fake orders

to trick other traders into believing values are greater or lesser than they really are.

This can lead to misinformed buying or selling,

artificially influencing prices. Once the desired result is achieved,

the cheater cancels his orders.

In wash trading, cheaters will trade with themselves to create

the impression of market demand, enticing other traders to get in on the action.

CHEERS

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There is no doubt in my mind that the markets are being messed with, this is why we need regulation. The Whales are hitting us by starting the panic selling, completely large OTC trades, then pushing the price back up.

This market is still young and we have seen the impact from the Mount Gox trustee find coin dump :-(. It is good to see the authorities stepping in, good post.

thank you

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