Report: DOJ Investigating Bitcoin Price Manipulation

The Justice Department is opening a criminal investigation, along with the Commodity Futures and Trading Commission, into people who may be manipulating cryptocurrencies like Bitcoin and Ether.  Investigators are in the early stages of examining illegal practices that unscrupulous traders have also been known to use in futures and equities markets. For example, the DOJ is looking into “wash trades,” which involves bad actors trading with themselves to create the illusion of market demand, and “spoofing,” which involves bad actors submitting and then cancelling a bunch of orders to influence a coin’s price. There are also legal methods that traders employ to distort markets, like pumping and dumping, which involves artificially inflating the price of a coin and then selling it before others can cash out.

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