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Criminal investigation into Bitcoin price manipulation zooms in on Tether (USDT) and Bitfinex by alanmif

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Criminal investigation into Bitcoin price manipulation zooms in on Tether (USDT) and Bitfinex
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A criminal investigation into Bitcoin (BTC) price manipulation by the US Department of Justice (DoJ) takes a closer look at Tether (USDT) and cryptocurrency exchange Bitfinex. The DoJ is mainly curious about the role played by these parties in the explosive price increase around December 2017. 

 The research has been progressing since May 2018 and is a collaboration between the DoJ and the Commodity Futures Trade Commission (CFTC). The big question is which way did cryptocurrency investors manipulated the prices of BTC. 
 The authorities try to use the investigation to determine the use of certain tactics, for example wash-trading or spoofing: a tactic in which a large order is placed in order to drive the price in a certain direction. 

 According to a new report from Bloomberg, the research team mainly focuses on whether there are ties between Tether and Bitfinex regarding price manipulation; about three different, closely related sources indicate that the current evidence suggests that there has been an illegal boost of prices using both Tether and Bitfinex. The two parties have the same management team, which is consistently the center of attention in the research. 

<strong> FOMO fuel </strong>

 Shortly after the start of the research, researchers from the University of Texas published an article about the impact of the issuance of Tether on Bitcoin. According to the article, Tether was mainly 'printed' and used after a market decline, which then again led to 'sizeable increases' in Bitcoin prices: 

<em> โ€œLess than 1% of the time frame of large Tether transactions is linked to more than 50% of the explosive growth of Bitcoin.โ€ </em>

 Jean-Louis van der Velde, CEO of Tether denies all allegations regarding the investigation. 

 Meanwhile, the market remains rather skeptical about Tether and parent company Bitfinex. When Bitfinex lost its banking partner earlier this year, uncertainty arose regarding the fiat backing of the stablecoin. This led to a substantially higher BTC price on exchanges that also offered Tether as many investors decided to dump their Tether for Bitcoin.
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@emperorofnaps ·
re-alanmif-criminal-investigation-into-bitcoin-price-manipulation-zooms-in-on-tether-usdt-and-bitfinex-20181121t220501451z
You got a 4.20% upvote from @emperorofnaps courtesy of @alanmif!

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