US to Launch BTC Price Manipulation Investigation

US Department of Justice together with CFTC will try to determine whether traders are manipulating the rate of bitcoin and other digital currencies
24 May 2018   1572

The US Department of Justice initiated a criminal investigation to determine whether traders are manipulating the rate of bitcoin and other digital currencies. This is reported by Bloomberg.

The investigation is aimed at identifying illegal practices that can be used to manipulate courses, including spoofing or filling the market with fake orders to mislead other traders and induce them to buy or sell crypto currency, an anonymous source said. They are also interested in fictitious transactions aimed at creating a false impression of active trade. Representatives of the Ministry of Justice work together with the Commodity Futures Trading Commission.

There’s very little monitoring of manipulative trading, spoofing and wash trading. It would be easy to spoof this market.

John Griffin

Finance professor, University of Texas

Authorities are concerned about the possibility of fraud in the cryptocurrency market for several reasons: they are not sure that exchanges are actively fighting those who can use dishonest practices, while opportunities for their application are present, and proper regulation is not.

The investigation is at an early stage, the source said. Representatives of the Ministry of Justice and the CFTC declined to comment on the situation.

VanEck & SolidX to Withdraw BTC ETF Application

Bitwise and Wilshire Phoenix' Bitcoin applications are still pending
18 September 2019   46

The bid for Bitcoin ETF launch by VanEck and SolidX, considered the most likely candidate for approval, was withdrawn amid continuing uncertainty from the US Securities and Exchange Commission (SEC).

VanEck and SolidX planned to place their Bitcoin ETFs on the Chicago Options Exchange (Cboe). However, as follows from the notification published on Tuesday, on September 13, the latter withdrew the application for a change in the rules, which, if approved, would allow launching the corresponding tool.

Previously, SEC postponed the solution several times at the request of VanEck and SolidX. The last time this happened in August was when the decision on Bitcoin ETFs from Bitwise Asset Management and Wilshire Phoenix was also postponed.

The final deadlines for decision making on Bitwise and VanEck / SolidX applications were on October 13 and 18, respectively. Wilshire Phoenix's decision is due on September 29th.

It should be noted that over the past few years, various companies have sought approval from the SEC to launch exchange-traded funds, but each time the regulator refused. Most often, the reasons for the negative decision were explained by the risks of market manipulations and insufficiently developed market control tools.