US Department of Justice investigating cryptocurrency for Price Fixing

Image result for doj vs crypto

US Department of Justice investigating cryptocurrency for Price Measures?

According Engadget the US Department of Justice is teaming up to look into various price fixing actions being taken in the cryptocurrency space that have the result of artificially setting a price of an asset. 

In particular the DOJ is looking into the practices of Spoofing and Wash Trading.

According to Wikipedia Spoofing is:

Spoofing is a disruptive algorithmic trading entity employed by traders to outpace other market participants and to manipulate commodity markets. ... Under the 2010 Dodd-Frank Act spoofing is defined as "the illegal practice of bidding or offering with intent to cancel before execution."

According to Wikipedia Wash Trading is:

wash trade is a form of market manipulation in which an investor simultaneously sells and buys the same financial instruments to create misleading, artificial activity in the marketplace. First, an investor will place a sell order.

Both practices have long been monitored in other financial mediums but the regulators are just beginning to catch up with the cryptocurrency market.  The goal of the private probe will be to find traders doing these practices to fix the price of the currencies.

The DOJ is teaming up with the Commodity Futures Trading Commission in the Investigation.

They crypto market may temporarily experience lower prices due to increase regulator presence.  However, on the longterm the elmination of fraudulent practices could lead increased asset flows from mainstream investors who are shying way from the market due to its wild west atmosphere.

--Kid Crypto


This Post was Written by Kid Crypto!
Kid Crypto is a crypto researcher out of Denver Colorado.  His opinions are his own and not that of Darkstreet.

If you have a question or a story idea can send to Kid on Twitter:

Important Disclaimer: Dark Street does not endorse any financial vehicle or investment. Opinions expressed on Dark Street are those of the writers and not of Dark Street. The information provided in Dark Street including but not limited to; articles, notes, webinars and accompanying material is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. Dark Street does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, Dark Street disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.