24 May Fed Probe Rattles Bitcoin Market; Is ‘Adult Supervision’ Coming to Crypto?
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Bitcoin may be the new frontier of money, but it’s still vulnerable to the kinds of scams that have plagued financial markets for decades. And now it looks as if the government is cracking down more aggressively.
The Justice Department has begun a criminal investigation into whether traders have manipulated the price of bitcoin and other digital coins, Bloomberg reported on Thursday, citing four unnamed sources.
Bitcoin traders clearly viewed the news as a negative, with the price falling to $7,400 from $7,558 within an hour of the report’s publication. The price has since rebounded back to $7,550.
The Justice Department, according to Bloomberg, is working with the Commodity Futures Trading Commission, which oversees futures and options markets. It’s not clear if regulators are also talking to CME Group (CME) or Cboe Global Markets (CBOE), both of which began offering bitcoin futures products last year. CME declined to comment, and Cboe did not immediately respond to a request…
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