According to Bloomberg, the US Department of Justice has filed criminal charges against traders who manipulated the price of Bitcoin and other cryptocurrencies.
The report states that the investigation is underway into spoofing - investors placing orders to manipulate the price - and flooding the market with false orders. Such orders were canceled as soon as the price movement took the desired direction. These actions, according to prosecutors, led to a false impression of trading volumes on crypto platforms and the demand for digital assets.
The information came from sources who wished to remain anonymous. Federal prosecutors are also working with the Commodity Futures Trading Commission and financial regulators who oversee derivatives, they said.
Bitcoin's price fell to $7,339 after the news, down more than 6%, according to statistics from exchange Coinbase.
The volatility of the cryptocurrency market has led to a review by authorities around the world to find ways to curb speculative trading and illegal activity. Some market participants claim that manipulation in the cryptocurrency market is gaining momentum.
CNBC reporters tried to contact representatives of the Department of Justice, but could not get any comments.
According to https://www.bloomberg.com
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