Today's Hard|Forum Post
Today's Hard|Forum Post

Wednesday June 13, 2018

Bitcoin Prices Were Manipulated

Finance professor John Griffin, and graduate student Amin Shams from the University of Texas have posted a paper showing that the price of Bitcoin may have been manipulated late last year when it's price ran up to record highs according to an article from The Hill. The paper states:

"By mapping the blockchains of Bitcoin and Tether, we are able to establish that entities associated with the Bitfinex exchange use Tether to purchase Bitcoin when prices are falling. Such price supporting activities are successful, as Bitcoin prices rise following the periods of intervention."

The study is based on analyzing the transaction records stored on Bitcoin's public ledger. The Commodity Futures Trading Commission subpoenaed both Bitfinex and Tether in December.

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What do you mean the imaginary money that lives in my computer could have it's value manipulated?! I'm shocked! SHOCKED! Thanks to @cageymaru for the story.

The CFTC and Securities and Exchange Commision have been ramping up their enforcement efforts against fraudulent cryptocurrency activity and scams as Bitcoin and other digital tokens gained prominence over the last year.