US Department of Justice is investigating Tether for manipulation of market prices

The virtual currency, Tether, which claims to be issued in the same amount of US dollar reserves, is currently in great trouble. The US Department of Justice announced that it is investigating the handling of virtual currency prices.

The advent of the Tether stable currency has indeed facilitated the trading of virtual currency around the world, but for a long time, the Tether has faced accusations of suspected manipulation of the market.

But in fact, Tether may become a printing machine through the secret increase in the number of issued money, through the additional issued Tether coins in the virtual currency market to manipulate the price of the virtual currency.

Virtual currency investors have recognised tether with the slogan of the stable currency, and it is this that allows Tether to issue US dollars by modifying the number.

The US Department of Justice believes that Tether will join the Bitfinex exchange at the end of last year to stretch the overall price of Bitcoin by transferring a large amount of Tether.

Previous studies have shown that every time a Bitcoin rises, there will be a large amount of Tether participation, and the Bitfinex exchange is also associated with the Tether issuer.

Given this, the US Department of Justice has included the Tether and Bitfinex exchanges in the survey, investigating their profits in conjunction with the manipulation of Bitcoin prices.

At present, the market price of Bitcoin has fallen from the end of last year to the high point of the beginning of this year. The current price is only 70% of the peak price of Bitcoin, which makes many people lose their money.

The last thing to be reminded is that the US Department of Justice is only a preliminary investigation that is not a formal complaint, which means that it is not at the identification stage.

Via: Bloomberg