CFTC Subpoenas Crypto Exchanges for Trading Data in Bitcoin Price Manipulation Probe

11.06.2018

The US Commodity Futures Trading Commission (CFTC) has sent subpoenas to several Bitcoin exchanges, demanding they provide trading data records in order to gather evidence for a recently launched investigation into Bitcoin price manipulation.

The Wall Street Journal reported on June 8 that the CFTC had become interested in trading data from four exchanges - Bitstamp, Coinbase, ItBit, and Kraken - after the CME Group launched Bitcoin futures in December 2017.

The CME Group, which owns the Dow Jones index, NYMEX, and COMEX, is one of the largest options and futures exchanges in the world. According to the WSJ report, the CFTC sought data from the four exchanges in January 2018, but received a limited and unsatisfactory response.

The US Department of Justice (DOJ) launched a far-reaching investigation into Bitcoin price manipulation in May 2018, focusing on identifying potentially illegal trading practices, such as spoofing and wash trading, that may have had an artificial impact on the price of Bitcoin.

Spoofing occurs when traders place large orders and cancel them shortly after, whilst wash trading refers to artificial boosts in trading volume that occur when one organization trades between their own accounts.

Even though exchanges do not follow the same rules as futures markets, the CFTC views Bitcoin as a commodity, which means that the CFTC has the power to investigate fraudulent Bitcoin trading practices.

Latest news

19.06.2018
New Token Listings: Constellation (DAG), Merculet (MVP), and MediBloc (MEDX) Token pairs of initial coin offering (ICO) projects Constellation (DAG), Merculet (MVP), and MediBloc (MEDX) were listed on several different exchanges June 19.
18.06.2018
Suspects Finally Arrested and Charged in $1.8 Million Ether Kidnapping from 2017 A cryptocurrency millionaire was robbed of his holdings at gunpoint by four men in New York in November 2017. Only one of the suspects was apprehended and charged in December 2017, but the law has finally caught up with the three other accomplices.
18.06.2018
ICON Announces Swap of ERC20 ICX Tokens to Mainnet Tokens After releasing its mainnet in January 2017, ICON (ICX) has announced that their older ERC20 tokens can now be swapped for mainnet tokens on select exchanges and via the ICONex wallet.