Kraken to Blame Bloomberg in BTC Futures Manipulation

Exchange's team posted a reply-article to recent Bloomberg's paper
02 July 2018   287

The Kraken Crypto Currency Exchange responded to Bloomberg's recent publication, which said that it uses USDT tokens to perform questionable transactions.

Four Bloomberg reporters wrote that the USDT market on Kraken shows disturbing signals, which should be checked by regulators. Kraken, in turn, said that Bloomberg's findings were devoid of logic, and blamed "lemmings journalists" for helping to spread the dubious material. The exchange also suggested that Bloomberg could have its own motives to write such an article.

If we are to take up our pitchforks against market manipulation, guide your torches toward this illumination: the Bloomberg News piece was published on June 29th, the last business day of trading for Q2, and expiration date of numerous futures contracts.  It raises red flags.
 

Kraken's Article

The exchange, apparently, refers to futures traded on the CME. Transactions on them ended on June 29, and the calculation will take place on July 5. Thus, Bloomberg's material casts a shadow on bitcoin, and its publication on this day could be beneficial to those who took short positions in futures, suggests Kraken.

In its article, Bloomberg states that transactions of a small amount sometimes have a greater impact on the price of USDT than large transactions, and draws attention to a large number of orders of a certain size that could hardly have been placed by people.

Unlike the price of Bitcoin, which fluctuates in tandem with shifts in trading volume, the price of Tether is inconsistently changed by large and small orders to buy or sell the coin.
 

Bloomberg's Article

In response, Kraken writes that USDT tokens are provided with US dollars at a rate of 1 to 1, which distinguishes them from bitcoin, the price of which is determined by supply and demand.

This level of USDT price discovery happens on markets with hundreds of millions of dollars of volume, not on Kraken’s USDT/USD market, which has currently traded less than $1 million in the last 24 hours.
 

Kraken's Article

To answer Bloomberg's question about why "trades at a volume of 75 were by far the most common, and made up 7.9% of total trading activity on Tether between May 1–June 22" fall on orders worth 13076,389 USDT, Kraken had to contact the trader who placed them. According to him, this meaning "was chosen by chance".

New York Attorney General Quit, Accused by 4 Women

Eric Schneiderman is known in cryptocurrency world as a person that send request to 13 cryptocurrency exchanges
08 May 2018   546

The Attorney General of New York State and the well-known opponent of the Trump Administration, Eric Schneiderman, left his, after The New Yorker reported that he was accused of attacking four women. This writes The New York Times.

It’s been my great honor and privilege to serve as attorney general for the people of the State of New York. In the last several hours, serious allegations, which I strongly contest, have been made against me. While these allegations are unrelated to my professional conduct or the operations of the office, they will effectively prevent me from leading the office’s work at this critical time. I therefore resign my office, effective at the close of business on May 8, 2018.
 

Eric Schneiderman

Ex Attornet General, New York

As reported by The New Yorker, two women said that Schneiderman strangled and beat them from time to time; they had to seek medical help. The third alleged victim reported that he "released her cruel slaps." The fourth shared similar experiences.

All victims were with Schneiderman in a romantic relationship and said that he showed cruelty in their attitude without mutual consent.

In mid-April, Schneiderman sent inquiries to 13 exchanges of cryptocurrencies and asked them to fill out a questionnaire that required information on "operations, the use of trading bots, conflicts of interest, work stops and other key points."

Many exchanges supported the initiative of the prosecutor, and Coinbase even disclosed some of the information in public. At the same time, the Kraken exchange refused to respond to the request, arguing that it was unwilling to support inadequate regulation of the New York-based cryptocurrency area.