Bitcoin players face criminal investigation

Is manipulation the name of the game?

The US Justice Department has opened a case which might end up with criminal charges.

Bloomberg said that the investigation will examine whether people are deliberately manipulating the market by tricking others into selling or buying cryptocurrencies by creating fake orders. The orders are then cancelled but if the technique works, it sends the price of bitcoins up, with crooks then selling and making fat profits out of the scheme.

News of the investigation sent a bitcoin down in value to $ 7,400 this morning.

Both Ether and bitcoin are under investigation, the wire reported.

Several governments across the world are eyeing up cryptocurrencies out of concern that phenomenon is destabilising markets.