May 28, 2023

The American regulator suspected the head of of market manipulation

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1 min.

The American regulator suspected the head of of market manipulation

The U.S. Commodity Futures Trading Commission (CFTC) has warned investors to be careful as arbitrage profit scams are hard to detect.

The CFTC said it suspects the generaldirector of the cryptocompany in fraud. According to the CFTC, Jeremy Rounsville misled investors by claiming he had developed a "highly advanced arbitrage bot" that could trade effectively.

“Rownsville's claims were not true. The bot, known as aBOT, has never traded on behalf of investors,” the derivatives regulator says.

The Commission announced that such manipulations intrade shows the importance of regulation, including the protection of customers and the control of market participants. CFTC Commissioner Kristin Johnson warned that this is neither the first nor the last time that investors have been manipulated. And that such incidents will become more and more:

"As the technology to support complex trading strategies becomes readily available, investors will increasingly be drawn into fraudulent fundraising schemes like the Rouncesville scheme."

Johnson added that the use is extremelycomplex trading technologies in the cryptocurrency market is “actually extremely competitive.” According to the official, strategies that focus on generating arbitrage profits or rents are almost elusive.

Recently, the US Securities and Exchange Commission (SEC) accused the Trade Coin Club team of stealing 80,000 bitcoins from over 100,000 investors using a Ponzi scheme.