Bitfinex has always been in the spotlight, often making headlines for being accused of manipulating Bitcoin prices.

Last November, the US Department of Justice, in cooperation with the Commodity Futures Trading Commission (CFTC), launched a criminal investigation against cryptocurrency exchange Bitfinex and Tether.

The US authorities are trying to figure out how additional issuance of USDT tokens could affect the growth of the bitcoin exchange rate in 2017, when the price soared and hit a new record of $20,000.

Concerns surrounding Bitfinex

The financial regulator is concerned that crypto exchanges could create artificial activity in the market to mislead traders.

It is not only the US government that suspects Bitfinex of illegal activities.

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There are also accusations from the crypto community, as many of them, especially the category of professionals in the field, have expressed their opinion, and Bloomberg analysts also agreed with this opinion.

Professors John Griffin and Amin Shams discovered that Bitcoin purchases on Bitfinex consistently increased when the value of the coin fell by a certain amount.

Experts are confident that the exchange issued USDT tokens for the purpose of inflating the price of Bitcoin and there is no reason other than that, according to them.

Every year the accusations against Bitfinex and Tether become more persistent and dangerous.

The company faces lawsuits totaling $1.4 trillion over alleged market manipulation in 2017.

But you the USDT token company denies everything, calling the claims against it “ridiculous” and accusing those who stood against it of being incompetent.

Inspection for fraudulent activity:

No judicial decisions have been made in this matter against Bitfinex, and no formal charges have been brought by the US government.

This means that all assumptions about the impact of the Bitfinex exchange on the price of Bitcoin are only theoretical.

According According to analyst Vladislav Antonov, trading platforms are unlikely to manipulate prices.

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The expert asserts that the market is not regulated, but platform owners know that sooner or later any deception will appear during the inspection of regulators.

He adds, stating:

It is not the platforms themselves that manipulate prices but the market makers.

I have no doubts that prices are manipulated on crypto exchanges.

I look daily at the data, the stock market, and see how the big players review them for liquidity, so they can execute a big attack with bulk trades – deals broken into small sums -.

Vladislav explained what he said by giving an example in which he states that a deal worth $3 million may consist of 1,300 positions with an average of $2,300.

When demo trades are made, it allows you to check the reaction of the active speculators to the price movement.

If it does not exist, then after a specified period of time, the amount is already reduced in the market.

The task of these market manipulators is to engage people and bots in the market as much as possible, in order to break the protective positions on the other side.

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The sharp fluctuations in the crypto market last from 3 to 10 minutes, and the movement rarely lasts more than three hours.

He added that the problem is not with the trading platforms, but with the group of market participants.

In some cases, the big players make the limit orders invisible but it is also possible that the exchange via the API contributes to the leakage of the stop orders data for the big players.

So who knows where the stop orders are accumulating knows the amount needed to move the market by X%.

Most important of all is the price gouging of Bitmex.

I can’t say anything about the Bitfinex trading platform.

The exchanges are linked by arbitrators, so if transactions are planned on all exchanges, the effect will be stronger, according to analyst Vladislav.

manipulation rate:

Pavel Wropolsky, CEO of Chronopay, believes that any large trading platform can deal with the price secretly, and through its wholesale traders can significantly raise or lower the supply.

Ivan Petukhovsky, co-founder of EXMO, believes that Bitfinex can still influence the Bitcoin price rate.

He emphasized that this is evidenced by the relationship between additional issues of USDT and changes in the Bitcoin exchange rate.

Only those who have insider information will be able to give an unambiguous answer.

Director of development, Maria Stankevich, added that there are many ways to manipulate the price of Bitcoin, for example geopolitics, media, and the access of major market makers and institutional investors.

In the latter it can be said that, at least for the time being, it is impossible to confirm the fact that Bitfinex is manipulating the price of Bitcoin.

However, these assumptions cannot be called unfounded, but only official statements by US courts or authorities will be able to solve the problem.

If this information is confirmed, it is possible that the cryptocurrency market will fall sharply, with a large portion of it occupied by a stablecoin in USDT with a market capitalization exceeding $4 billion.

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