USA investigates manipulations in bitcoin trading

Illegal spoofing and washing

For some, the course of Bitcoin may seem suspicious. The fluctuations, the sudden losses and subsequent price increases can not always be right . At least that's what the US Department of Justice thinks and is therefore launching investigations against strangers. This is primarily about Bitcoin, but other Altcoins could be affected by the manipulation. The investigation should refer to illegal practices in Bitcoin trading, more specifically to spoofing and washing.

Spoofing describes the spoofing of a large volume of trade. Big orders are given up and thus the price is manipulated upwards. Before it can come to any sales, the order is canceled again. In the case of Washing, the trader deals with himself, which in turn represents a manipulation of supply and demand. To get to the bottom of possible machinations, the US Department of Justice is working with the Commodity Futures Commission (CFTC). So far both have not yet commented on the investigations. However, if the ministry and the CFTC succeed in showing traders manipulation, that could mean further regulation.

Open manipulation in the network

Especially with Bitcoin manipulations could have far-reaching consequences. The cryptocurrency has a guiding function. If it rises, this usually has a positive effect on the Altcoins. In addition, it is estimated that 1,000 investors hold a total of 40 percent of all Bitcoins. Your decisions could affect the entire market. Today, the eToro industry service carries out $ 5 billion worth of daily transactions.

This frauds have been known in the network for some time. Especially on telegram repeatedly appear chat groups in which coordinate the members to perform so-called Pumps & Dumps. The preferred target here are relatively unknown Altcoins, whose prices are driven up in no time, only to buy them then profitably.


More regulation

These events reported by Bloomberg join in a series of several bad news for the cryptocurrencies. In the past, the US Securities and Exchange Commission had banned some ICOs. Although the ICOs are often compared to the IPO, but these are not shares, which is why this market is hardly regulated. That's why it often comes to scams. The call for more regulation within the crypto industry is not ignored. The Gemini trading platform is encouraging other exchanges to develop common standards. In Japan and the Philippines is already more regulated and China is not afraid to close entire stock exchanges.