The Department of Justice has finally launched an investigation into the price manipulation of Bitcoin and Ethereum – looking into shady practises that have caused a huge overvaluation of both digital currencies.
The investigation will look into “Pump and Dump” groups, as well as other scams that regularly skirt the law in the Crypto market.
Bitcoinglobalnews.com reports: It should be made clear that the investigation is meant to be wider reaching than simply looking into “Pump and Dump” groups. Reports state that it will look into just about any activities that could affect market prices, in theory.
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Prime examples of this include spoofing or activities like creating bots to fill the exchanges with orders that aren’t even real. “Pump and Dump” groups may be thought of as connected to this because of what Bloomberg’s report says about anything that fraudulently influences market movement being investigated.
The Justice Department is working with the Commodity Futures Trading Commission on this, whom some of you already know as the employer of Chris Giancarlo, who serves as its chairman and doesn’t blindly stand against Cryptocurrencies.
The two organizations will use past examples of fraudulent activities in markets like the futures and equities markets, in their current efforts. The only difference will be that everything will be considered, of course, in the decentralized and often anonymous context of the Blockchain world.
Bloomberg even suggested that the investigation could be wider than only Bitcoin and Ethereum and the CFTC as well as the Department of Justice could be keeping further details close, on purpose. All in all, it seems like concrete regulations could finally be coming.
Still, overall, it’s logical to wonder how much they can actually do. The CFTC reportedly cannot yet fully regulate crypto markets but what it can do is enact sanctions against digital currencies if it proves fraud in any way. If you are a Crypto investor as of now, as this all moves forward, now just might be as good a time as any to HODL.
Sean Adl-Tabatabai
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