Bitcoin’s skyrocketing growth was ‘fraud and manipulation’ – report | WHAT REALLY HAPPENED


Bitcoin’s skyrocketing growth was ‘fraud and manipulation’ – report

Griffin, who has 10 years of experience in detecting financial fraud, examined millions of transactions on cryptocurrency exchange Bitfinex. In his paper, Griffin says that the US dollar-pegged cryptocurrency tether was used to buy bitcoin at the times that the latter was falling, which helped “stabilize and manipulate” the cryptocurrency's price.

“Fraud and manipulation often leave footprints in the data and it's nice to have the blockchain to track things,” Griffin told CNBC. Whenever bitcoin fell, tether was used to buy it to prop up the price of the leading crypto.

“It was creating price support for bitcoin and, over the period that we examined, had huge price effects,” Griffin said. “Our research would indicate that there are sophisticated people harnessing investor interest for their benefit.”

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA