According to a latest Bloomberg report, the US Justice Department has reportedly opened a criminal probe into potential market manipulation of specifically ethereum and bitcoin price.
The investigation concerns illegal practices that can influence prices such as “spoofing“, where false orders are placed on exchanges and then withdrawn to manipulate prices – in an attempt to lure other people into buying or selling and “wash trading,” where market participants trade with themselves to create the illusion of market activity.
The Justice Department’s investigation into ethereum and bitcoin price will include other agencies, the sources said. It will work with the US Commodities Futures Trading Commission (CFTC) which oversees bitcoin derivatives such as futures, and has declared that cryptocurrencies are commodities.
Neither the Justice Department nor the CFTC have officially passed any statements in the press, but bitcoin price and its volatility has been in the news for quite some while now, ever since the year started. With this investigation, there might be certain revelations about the bitcoin price which we should wait for.
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