US investigates price manipulation of Bitcoin and other cryptocurrencies

The situation of cryptocurrencies could worsen in the United States, after the Department of Justice of that nation announced an investigation today aimed at discovering whether or not there is manipulation of the price of Bitcoin or other cryptocurrencies by large investors in the United States. this market.

In particular, the US Government considers that some merchants and investors are manipulating the price of these assets through illicit tactics such as the issuance of false orders, which causes the rise and fall of prices at convenience.

According to a Bloomberg report, federal prosecutors working on the investigation are backed by the Commission on Futures and Commodities (CFTC), a financial regulator that oversees the values linked to Bitcoin.

Among the reasons that have aroused the fear of the authorities about market manipulation, the skepticism is that all exchange houses and stock exchanges monitor the manipulators correctly, as well as the "huge" impulses of prices and prices. the absence of a clear regulation for these assets.

The illicit methods of manipulation investigated by the Department of Justice with the CFTC include counterfeiting and wash trading, a form of fraud that the US authorities have tried to eliminate for many years. In this type of counterfeit, an investor sends a series of orders and then cancels them once the prices move in the desired direction.

The laundering operations investigated by the US authorities involve the 'cheater' trader who trade in the cryptocurrency to give a false impression that the demand in the market is wide and this attracts other investors as well. In this regard, the Bloomberg report reveals that prosecutors are investigating the trade with Bitcoin and Ethereum.

Independently of this investigation, the interest of the United States Government in regulating cryptocurrencies at a level well below its already established traditional financial system is known. However, the distrust of people in this system of fiat banks and currencies continues to rise, while the adoption of cryptocurrencies continues to rise.