US Justice Department Probes Tether Due to the Manipulation of the BTC Price
The US Department of Justice decided to check whether Tether had manipulated the market to pump up the BTC price.
According to three sources from Bloomberg, the US authorities have opened the investigation to determine whether Bitcoin’s growth last year was a market manipulation. Their gaze narrowed to Tether and Bitfinex, the largest cryptocurrency exchange, which stands behind stablecoin.
In the summer of this year, a group of scientists at the University of Texas published a study. According to it, Tether flooded the market with unbacked tokens to increase the price of BTC. When the priced reached the desired point, Tether sold BTC and rectify its reserves.
Representatives of Tether denied the allegations.
According to Bloomberg, the Commodity Futures Trading Commission launched an investigation against Tether and Bitfinex in December last year. Now the Commission will coordinate its efforts with the Justice Department.