CFTC Demands Crypto Exchange Data In Market Investigation

June 11, 2018 10:04 pm Published by

Four cryptocurrency exchanges have reportedly been subpoenaed by the U.S. Commodity and Futures Trading Commission (CFTC) in a bid to obtain their trading data as part of a larger investigation into market manipulation, CoinDesk reported Monday.

The action by the financial market regulator, reported by the Wall Street Journal on Friday, seeks comprehensive trading data from Bitstamp, Coinbase, itBit and Kraken, which altogether serve as a base for the bitcoin futures price listed by CME Group, the report said.

The WSJ said the subpoenas were allegedly issued because the CFTC was “upset” CME was not successful in negotiating with the exchanges for access to their trading data, CoinDesk reported.

In fact, the report continued, the exchanges initially rejected the requests, calling the subpoenas “intrusive,” according to the report. Although the exchanges had a change of heart and provided some trading data, their compliance only came after CME had compromised by limiting the range of its access from a full-day’s activity to just a few hours, and to limited market participants.

According to the report, the failure angered the CFTC, which supervises CME and gave it the green light in December 2017 to list bitcoin futures, CoinDesk reported.

“All participating exchanges are required to share information, including cooperation with inquiries and investigations,” said a CME spokeswoman in the report.

News of the investigation first emerged on May 24, indicating the U.S. Department of Justice had launched a probe into illicit trading practices in the crypto market in conjunction with the CFTC, the report said.

According to the report, the government agencies are investigating traders that may have influenced the bitcoin market through old-school tactics such as sending large numbers of fake orders.

WN.com, Jack Durschlag



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