The American Ministry of Justice launched an investigation into a criminal case, the purpose thereof is to detect the facts of manipulation of the Bitcoin price. During the investigation, law enforcement officials will identify illegal methods and schemes used for enrichment purposes.
Such methods include spoofing and placing fake orders on the exchanges, the task of which is to mislead other traders about the real state of affairs. This can lead to the fact that other market participants make wrong conclusions regarding the direction of the movement of quotations and make erroneous transactions. Fictitious trading operations are also considered as manipulation, the purpose of which is to create a false idea of the trading activity.
The employees of the Ministry of Justice will closely work with the representatives of the CFTC Commission. The authorities are concerned about the possible frauds in the crypto-market for a number of reasons. Most importantly, there is no certainty that the administrations of trading platforms take effective measures against dishonest players, leaving them the opportunity to influence the market. This investigation has just begun, official statements of the authorities have not yet been published.