de | cn | ru

Market News

Tether might have been used to manipulate Bitcoin price in late 2017

Jun 15 2018
By
Jonathan Smith
Tether, a cryptocurrency token that is supposedly backed by the US dollar, has been spent on Bitcoins at key instances to support its price, reveals a paper published by a University of Texas professor, cited by Bloomberg.
 
The pattern has helped drive Bitcoin prices to a record high in December, says  John Griffin, professor in finance, who in 2017 has also shed light on a potential  manipulation of the VIX  benchmark index.
 
Each of the 2.5 billion Tethers in existence is supposedly backed by a real US dollar in a bank account owned by Bitfinex, a crypto currency exchange registered in the British Virgin Islands. Because of the  volatility of the Bitcoin, since its creation in 2015, Tether has widely been used as a safe haven by many crypto investors. 
 
Meanwhile the U.S. Commodity Futures Trading Commission subpoenaed both Tether LTD and Bitfinex, in December, seeking evidence that Tether is backed by a reserve of U.S. dollars, as claimed. Tether and Bitfinex haven’t been officially accused of wrongdoing yet. 
 
“It is the mother of all crypto criminal scams. Clear evidence and proof of massive criminal price manipulation. When will the SEC and CFTC indict and put these criminals in jail?” wrote on Twitter Nouriel Roubini, economist and chairman of Roubini Macro Associates LLC after the publication of the paper.
 
In his analysis “Is Bitcoin Really Un-Tethered?” Griffin examines how the 2.5 billion Tether coins in existence have circulated the markets and the effect they had on the Bitcoin prices. The research showed a pattern of Bitcoin price support, Griffin said, cited by Bloomberg.
 
Bitcoin raised to nearly 20,000 USD in December before crashing below 6500 USD this spring.
TAGS: Bitcoin  Tether  USD Tether  USDT 
Forex
Broker Country Regulation Platform Min Deposit Review
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Cyprus, SVG CySEC MT5, Web,
cTrader
$100 Review Website
Australia, Cyprus ASIC, CySEC MT4, MT5, Iress $100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT5 $5 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website

More Forex Market News

Crypto scammer Patrick McDonnell sentenced to 33 months of imprisonment

Jan 17 2020 14:54:19

Patrick McDonnell, CEO of Coin Drop Markets, was sentenced to 33 months in federal prison and also ordered to pay $224,350 in restitution, after pleading guilty to cryptocurrency fraud last year. The Federal court in Brooklyn issued the sentence on Thursday. Read more

UK's FCA expects up to 10% decline of profits in the forex industry

Jan 16 2020 17:47:56

The Financial Conduct Authority (FCA) expects that the new regulations imposed on the retail forex and CFD brokers in the UK will lead to an overall reduction of their profits of between 6% and 10% - a decline which by the year 2021 may reach between 38.5 million GBP and 55.3 million GBP. Read more

UK’s FCA updates its warning list with A.B.Capitals and LincolnFX

Jan 16 2020 16:48:27

  Another bunch of brokers have made it to the warning list of UK’s Financial Conduct Authority since the beginning of 2020. We’ll focus on two of them - A.B. Read more

Coinbase will pay $1 mln to victims of the Cryptsy hack attack

Jan 15 2020 18:06:18

Coinbase, the San Francisco based crypto exchange, has agreed to pay 962500 USD as a compensation  to victims of the Cryptsy hacker attack, in an out of court settlement, court papers reveal. Read more

Clients of FXFINPRO to be invited to file compensation claims

Jan 15 2020 14:32:03

  Clients of now-defunct forex brokerage FXFINPRO will be invited to submit compensation applications by the Investor Compensation Fund (ICF), the Cyprus Securities Exchange Commission (CySEC) announced on Monday. Read more

Australians were scammed for $42.5 mln in 2019 alone

Jan 14 2020 14:08:08

Australians have lost some 61.61 mln AUD (42.5 mln USD) in investment scams in 2019 alone, the latest data of the Australian Competition and Consumer Commission (ACCC) reveals. Read more

Chinese investors lost an average of $20k to crypto scams in 2019

Jan 14 2020 13:06:44

  Chinese crypto investors who have been scammed in 2019 reportedly lost nearly $20k each (134,522 yuan), according to the 2019 Cyber Fraud Trend Research Report, published previous week. Read more

Cobinhood suspends operations amidst exit scam rumors

Jan 13 2020 15:53:10

  Crypto exchange Cobinhood announced they’re shutting down temporarily last week to audit all accounts' balances. However, many suspect that the people behind the operation are actually pulling an exit scam. Read more

FCA to pay £2500 for misleading investor who lost £50000

Jan 12 2020 10:52:48

The Financial Conduct Authority (FCA) in the UK has been ordered to pay 2500 GBP to an investor who lost 50 000 GBP, because of an error on the FCA financial services register, the Financial Times reports. Read more

FCA becomes AML/CTF supervisor of crypto businesses in the UK

Jan 10 2020 16:08:30

  As of today, the UK Financial Conduct Authority (FCA) becomes supervisor of crypto-asset businesses for anti-money laundering and counter terrorist financing (AML/CTF) purposes. Read more

de | cn | ru