Crypto Securities Fraud
Comments debate whether cryptocurrency trading practices involve insider trading, market manipulation, or securities fraud prosecutable by the SEC, frequently referencing Matt Levine's 'everything is securities fraud' and comparisons to traditional finance regulations.
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Can't they still be prosecuted by the SEC for insider trading? /s
Possible securities fraud? I predict no one is punished and bonuses all around!
They (allegedly) broke very clear regulations on trading securities. What's the problem?
Looks like I am wrong. SEC are also charging with fraud. https://www.sec.gov/litigation/complaints/2017/comp-pr2017-1...
Where is the fraud? They can't charge with insider trading, because insider trading does not apply to currencies or cryptocurrencies.
https://www.bloomberg.com/opinion/articles/2019-06-26/everyt... (Matt Levine, Money Stuff: Everything Everywhere Is Securities Fraud)
Given the track record of Investment Banks and massive felonies and market manipulation/rigging over the past several years, It's very easy to assume this sort of action was taken by current or former employees of a large Investment Bank.
“everything is securities fraud” —Matt Levine
Thanks for confirming! What happens if this kind of thing happens due to an unintentional bug? Do execs go to jail for market manipulation?
You could look for anyone who lied about the short position or spread other misinformation and check if they have a financial interest. These laws aren't unenforceable just because a bunch of people did it on the internet.