US Department of Justice to find out who manipulates Bitcoin price

The Department of Justice of the United States has opened an investigation related to the manipulation of the price of Bitcoin, financial observers found out.

The Commodity Futures and Trading Commission is also aiding the Justice Department. As reported by the press, they are both searching for traditional stock market frauds first witnessed long before the advent of Bitcoin - for example, the classic pump-and-dump scheme.

Additionally, regulators try to find signs of spoofing and wash trades. Spoofing is being made when a person opens a trade order, this influences the price, but the trade never happens. Wash trades are made when two or more entities belonging to the same individual or criminal group conduct trades between each other - and then the market goes in the direction they desire.

As a reminder, the United States Securities and Exchange Commission is already conducting a separate investigation dedicated to initial coin offerings and securities laws violation, while its leader Jay Clayton is openly welcoming Operation Cryptosweep - the joint initiative of Canada and America to combat toxic ICOs.

Bitcoin’s price has fallen to $7391. The fall has started even before the news on this particular investigation, although some media agencies connect the two events with each other.

Image: Andrew Harrer / Bloomberg