According to BloombergAccording to Bloomberg
, the U.S. Department of Justice (Justice Department) launched a criminal investigation into the illegal manipulation of digital currency prices. The investigation is being conducted by the U.S. Department of Justice in cooperation with the Commodity Futures Trading Commission (CFTC).
According to informed sources, electronic fraud and false transactions are one of the directions of investigation.
In spoofing, traders submit a large number of orders, which they cancel as soon as the price deviates in the expected direction. False trading refers to creating a mirage of growing demand in the market, so that other investors can enter the market to buy.
Bloomberg reported that there are three reasons for the investigation of digital currency by relevant departments: suspicion of cheating in exchanges; frequent price fluctuations will make market valuation easier; virtual currency lacks regulations.
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Lack of supervision leads to frequent occurrence of digital currency fraud
Bloomberg reported that global digital currency exchanges are scattered, and most exchanges are not registered with the Commodity Futures Trading Commission or the SEC. At the same time, there is a lack of market regulation for digital tokens.
University of Texas finance professor John Griffin, who has studied digital currency market manipulation, said the lack of regulation has made the industry a target for speculators.
Last year, a blogger flagged the actions of a trader named Spoofy. Spoofy allegedly landed a $1 million order without executing any deals.
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Digital currency regulation continues to increase
Soaring from less than $1,000 at the beginning to nearly $20,000, Bitcoins meteoric rise has become a lure for retail investors. Digital currencies have also attracted a large number of loyal fans, produced celebrity IP, and increasingly attracted the attention of investors.
As digital currency ushers in a global investment boom, in recent days, the United States has continued to move towards the digital currency market.On May 21, the U.S. Securities and Exchange Commission (SEC) has targeted ICODozens of
Affected by multiple bad news, the price of Bitcoin fell for several consecutive days. As of 9:32 a.m. London time, Bitcoin fell 3% to $7,409 to $7,370, down 6.54% in 24 hours.
(I am Mo Xinnan, the author of Odaily. I am exploring the real blockchain. Please add WeChat: m15978294590 for communication. Please note your name, company, and position.)
