As Bitcoin plunges, the U.S. Justice Department is investigating whether last years epic rally was fueled in part by manipulation, with traders driving it up with Tether -- a popular but controversial digital token.
While federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, theyve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter.
This doesn't sound good at all. I wonder if this news will exacerbate the price disparity between Bitfinex/Tether and the rest of the market. Storing money there sounds like risky business. The Justice Department doesn't mess around. I lost a lot of money last year when they took down BTC-E.