US Justice Department has launched an investigation willing to find out whether traders and investors can manipulate crypto rates.
According to Bloomberg report, the Department will cooperate with CFTC on this matter. The authorities are striving to determine illegal patterns that can be used for exchange rate manipulation in the crypto sector.
The announced investigation will target so-called spoofing among other items. This scheme is widely known in financial markets – this is when a manipulator sets more inquiries for sale/purchase but does not intend to close deals and cancels inquiries before their completion.
The spoofing is said to be aimed at collecting market data (demand, supply), attracting the attention of the players as well as the artificial creation of positive trading picture including demand and prices.
The US bodies are concerned with different schemes in the crypto market. They doubt that exchanges are taking sharp moves against illegal practices in the segment.
It is rumored that the probe is at the very beginning for now, though no official comments were made as of yet. These days, CFTC also provided a guideline for those who want to deal with cryptocurrency derivatives.