US Justice Department reportedly opens criminal investigation into bitcoin price manipulation
US Justice Department reportedly opens criminal investigation into bitcoin price manipulation
• The investigation surrounds the practice of spoofing and flooding the market with fake orders, Bloomberg reported.
• The price of bitcoin fell on the news to $7,339, and was down more than 6 percent, according to bitcoin exchange Coinbase.
The U.S. Department of Justice opened a criminal probe into the possibility that traders are manipulating the price of bitcoin and other cryptocurrencies, according to a report from Bloomberg.
The investigation surrounds the practice of spoofing — where an investor places orders that are intended to manipulate the price of an instrument — and flooding the market with fake orders, the report said Thursday, citing four unnamed people familiar with the probe.