The American regulator suspected the head of Arbitraging.co of market manipulation

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US Commodity Futures Trading Commission (CFTC) urged investors to be careful as fraud aimed at arbitrage profits is difficult to detect.

The CFTC said it suspects Gen.Director of the crypto company Arbitraging.co in fraud. According to the CFTC, Jeremy Rounsville misled investors by claiming that he had developed a “highly advanced arbitrage bot” that could trade effectively.

“Rounsville's allegations were not true. The Arbitraging.co bot, known as aBOT, never made trades on behalf of investors,” the derivatives regulator assures.

The Commission announced that such manipulations intrade show the importance of regulation, including customer protection and control of market participants. CFTC Commissioner Kristin Johnson warned that this is not the first or last time investors have been manipulated. And that such incidents will become more and more frequent:

“As the technology supporting complex trading strategies becomes readily available, investors will increasingly become involved in rigged money-raising schemes like the Rounsville scheme.”

Johnson added that the useextremely sophisticated trading technology, the cryptocurrency market is “actually extremely competitive.” According to the official, strategies that are focused on obtaining arbitrage profits or rents are almost elusive.

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