Today, it has emerged that the US Department of Justice has launched an investigation alleging manipulation of cryptocurrency prices.. The news had a huge impact on the market.. Bitcoin’s price fell below $ 7400 with the news. What will this decision of the Ministry of Justice bring for the markets? Experts on the matter commented.
Prominent cryptocurrency supporters did not seem to be alarmed by the news that the Department of Justice has launched an investigation alleging manipulation of cryptocurrency prices.
Bloomberg reported that billionaire investor Mike Novogratz stated that he was not surprised by the allegations and welcomed the investigation.. Cameron Winklevoss, head of cryptocurrency exchange Gemini, feels the same as Novogratz. Wall Street’s biggest Bitcoin bull lauded the US Justice Department’s move as a prelude to necessary regulatory oversight.
It’s good to weed out the bad guys.. Not bad for the health of the market. Many exchanges do these artificial volume numbers, as the Department of Justice suspects.”
We welcome any investigation to deter bad actors,” said Cameron Winklevoss, president of Gemini.
Wall Street analyst Tom Lee said, “This is really good news, because it shows that adult surveillance is coming.”
Spencer Bogart of cryptocurrency hedge fund Blockchain Capital said that regulators wouldn’t be surprised if they find something about the scam: left width-100″ data-style=”style-1″ data-position=”center” data-align=”left” data-width=”100″>
“I have no first hand evidence of manipulation of bitcoin prices, but It wouldn’t be a big surprise if even the world’s most regulated markets (Libor, FX markets, commodities) are proven to be constantly manipulated.”
Themis Trading’s Joseph Saluzzi on the other hand, stated that there should be cross-market surveillance in crypto money markets to prevent such frauds: