The Ministry of justice of the United States has initiated an investigation against the Unknown. Therefore they wanted to investigate possible price manipulation in Bitcoin Trading. The practices, which are supposed to be behind the movements in the Bitcoin price, call Spoofing and Washington.
That can’t be right!? If you look at the history of the Bitcoin exchange rate and of other crypto-currencies, partially, it is sometimes right to whip out the Simple. The courses falls within a very short time, only to quickly rise again. The conclusion of many: someone is manipulating the prices.
This question takes on now the Ministry of justice of the United States. As reported by Bloomberg, to focus the investigation on possible illegal practices in the Bitcoin Trading. The practices in question are, therefore, especially the Fake orders and the Flooding of the market, in order to influence the price. Apparently, statements from four people, the Ministry of justice, which were already involved in such practices.
Price manipulation, Spoofing and Washington
More investigate about these possible manipulations of the Bitcoin rate works in the Ministry of justice also with the Commodity Futures Trading Commission (CFTC). The practices of the two authorities are afraid to call themselves Spoofing and Washington. When Spoofing the Trader is certain to purchase or sell, place orders, until the price moves in the desired direction. To cancel only to then again. When Washing the Trader to trade with himself in order to manipulate this supply and demand prices. For the time being, they wanted to investigate the crypto-currencies of Ethereum and Bitcoin.
Here it is especially the unregulated Situation of the market, which gave to such tactics:
“Manipulative Trading, such as Washing and Spoofing is monitored very little. It is very easy to spoof this market“,
John Griffin, a Professor at the University of Texas says.
Further Details are not yet known. If the CFTC and the justice Department to create it, price manipulation to prove that it is authorized by law to take regulatory measures.