US Justice Department takes measures to detect crypto price manipulations

Posted 24 May, 2018

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.

Previous story

25 May, 2018 11:05

← UNOPS and IOTA Foundation enter into MOU

The United Nations Office for Project services has announced a partnership agreement with IOTA aimed at the integration of IOTA Ledger accounting system into its runtime processes. The organization believes that this technology will boost the effectiveness of the management and real-time supervision of the UNO documents, supply chains...

UNOPS and IOTA Foundation enter into MOU

Next story

24 May, 2018 16:51

Exchanges and ICO holders in Singapore receive MAS crypto rules reminder →

The Monetary Authority of Singapore (MAS) has sent a warning notice to eight local cryptocurrency trading platforms citing a ban on trading of futures and digital tokens featuring securities properties unless the required permission is granted by the authorities. Trading of tokens that are traded on Singapore-based platforms and can be considered as assets subject to...

Exchanges and ICO holders in Singapore receive MAS crypto rules reminder
Write a comment
 
Prove you’re not a bot + 15 = 20