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> It’s not [...] illegal Errr - what? I think you'll find that market manipulation is prohibited in the US under Section 9(a)(2) of the Securities Exchange Ac
by noja 5y ago
> It’s not [...] illegal
Errr - what?
I think you'll find that market manipulation is prohibited in the US under Section 9(a)(2) of the Securities Exchange Act of 1934, and in the EU under article 12 of the Market Abuse Regulation (etc.)
The US Securities Exchange Act defines market manipulation as "transactions which create an artificial price or maintain an artificial price for a tradable security".
See https://en.wikipedia.org/wiki/Market_manipulation https://en.wikipedia.org/wiki/Market_manipulation
- adrianN 5y agoIs Bitcoin already classified as a tradable security or is it still Monopoly money?
- vmception 5y agoFalse dilemma Products are regulated by the FTC Commodities and currency derivatives that are traded are regulated by the CFTC Securities issuance and securities trading are regulated by the SEC so have fun with the federal trade commission rawr big teeth over there /s
- teekert 5y agoPeople assign value to monopoly money now? Edit: I get that many people here are ant-cryptocurrencies, but I think it is rather childish to call it monopoly money.
- adrianN 5y agoYeah, a replacement set costs about three Euros on Amazon.
- cma 5y agoIt's not classified as a security.
- giansegato 5y agothey're based in Hong Kong so i'm not sure why US / EU regulation should apply
- VHRanger 5y agoActually, Alameda is based in the Cayman Islands as a legal entity
- giansegato 5y agoso it's a branch, uh. i'll never wrap my head around the complex corp structure of these crypto juggernauts
- trulyme 5y agoThat's the idea.
- JohnJamesRambo 5y agoIt’s not a security, my friend. Crypto is the land of no rules and caveat emptor.
- SilasX 5y agoBut Bitcoin options on e.g. LedgerX.com are securities (edit: regulated ones, that is), and anything that affects Bitcoin’s price is going to affect those derivatives’ prices.
- ianai 5y agoSeems trading firms largely facilitate trading it btc and other cryptos. If they’re not legally regulated as securities then it may be time for that regulation. Or simply being disallowed for such trading firms.
- SilasX 5y agoLedgerX (now FTX US derivatives) is regulated. (Sorry, forgot to mention it in the first comment -- that was the whole point of bringing it up in this context.)
- vageli 5y ago> But Bitcoin options on e.g. LedgerX.com are securities (edit: regulated ones, that is), and anything that affects Bitcoin’s price is going to affect those derivatives’ prices. But the SEC doesn't regulate mortgages even though there are derivative securities that are regulated. SEC regulates the asset backed securities but not the assets underlying those securities.
- SilasX 5y agoThe question was whether the SEC would have jurisdiction. The manipulation affects securities that the SEC would have jurisdiction over, so it would follow that they do. If not, it would be a pretty gaping hole in their mandate: "It's fine to manipulate X and profit from that, but not to profit from the regulated derivatives that closely track X."
- kyruzic 5y agoYou realize the world isn't beholden to stupid American laws right?
- TheDesolate0 5y ago
- noitsnot 5y agoThis guy apparently runs a company that has millions and takes advantage of inefficiencies. He's not creating the fake articles but he's using what it creates to his advantage. From what I understand, he will run the price down if there is low liquidity and trigger your stop losses and somehow make money doing it.