NY Attorney General: Crypto Exchanges Vulnerable to Manipulation

ny_attorney_general
New York Attorney General Eric T. Schneideman as photographed in January of this year.

The New York State Office of the Attorney General (the “OAG”) released the Virtual Markets Integrity Initiative report on September 18 that investigates the vulnerability of cryptocurrency exchanges, highlighting risks, manipulation and conflicts of interest.

The initiative, launched in April, was founded to protect and inform New York residents who trade in virtual or “crypto” currency. It began when New York Attorney General Eric T. Schneideman requested information on operations, controls and logistics from thirteen cryptocurrency exchanges.

Since the OAG is responsible for law enforcement that protects investors and consumers from unfair and deceptive practices, the initiative began as a fact-finding investigation to analyse risk as well as increase transparency of platforms on the cryptocurrency market.

The recent report included nine major platforms Bitfinex (operated by iFinex Inc.), bitFlyer USA, Inc., Bitstamp, Ltd.,2 Bittrex, Inc., Coinbase, Inc., Gemini Trust Company, itBit (operated by Paxos Trust Company), Poloniex (owned by Circle Internet Financial Limited), and Tidex (operated by Elite Way Developments LLP). Clarity was prioritized throughout analysis of basic practices and functionality as well as information on customer asset security.

The study found that the absence of acknowledged strategies for examining virtual assets results in the lack of a straightforward independent review of digital currency exchanged on trades. This puts customers and clients’ finances hung on their trade accounts in danger of assaults from hacking or burglary. The report consequently addresses the issue of open assurance and the adequacy of business protection. It also addresses the question of commercial insurance to cover possible losses.

Highlighting the possibility of trade abuses, the report states: “Automated trading activities could also allow a single trader or group of traders to command multiple accounts simultaneously to obscure coordinated trading, in order to manipulate prices.”

The report stresses on automated dealers deployed by several cryptocurrency platforms. As they are not offered special conditions, other trading clients are left off guard and vulnerable. It also addresses conflicts of interest that are represented by overlapping lines of businesses within cryptocurrency trades.

As of now, the report asserts, there are trade endeavors that are not transparent while favoring certain traders. This can be seen in employees trading on their own venue, platforms issuing their own currency, deploying automated traders or accepting compensation in exchange for listing an asset or trade.

The report emphasizes the challenges in tackling suspicious trading patterns due the lack of real-time as well as historical market surveillance capabilities. Yet it also notes that there are some platforms who are trying to police the fairness and integrity of their exchange.

57 comments

  1. Nice blog here! Also your site loads up very
    fast! What host are you using? Can I get your affiliate link
    to your host? I wish my site loaded up as fast as yours lol

  2. Hi, i think that i saw you visited my weblog so i came to “return the favor”.I am attempting
    to find things to improve my web site!I suppose its ok to use a few of your ideas!!

  3. Hey! Would you mind if I share your blog with my facebook group?
    There’s a lot of people that I think would really enjoy
    your content. Please let me know. Cheers

  4. Having read this I believed it was really informative.
    I appreciate you finding the time and effort to put this information together.
    I once again find myself spending a lot of time both reading and leaving comments.

    But so what, it was still worth it!

  5. It’s a shame you don’t have a donate button! I’d without a doubt donate to this brilliant blog!
    I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account.
    I look forward to brand new updates and will share this website with my Facebook group.
    Chat soon!

  6. Undeniably imagine that which you said. Your favorite justification appeared to be at the
    internet the simplest thing to take into account of.
    I say to you, I definitely get annoyed while people consider issues that they plainly do not understand about.
    You managed to hit the nail upon the highest as neatly as defined out the
    whole thing with no need side effect , other folks could take a signal.
    Will likely be back to get more. Thanks

  7. Someone necessarily assist to make severely posts I might state.
    This is the very first time I frequented your website page
    and to this point? I surprised with the research you made to make this actual
    post extraordinary. Great activity!

  8. I have been exploring for a little for any high quality articles or weblog posts in this kind of house .
    Exploring in Yahoo I ultimately stumbled upon this site. Studying this info So i am satisfied to express that
    I’ve an incredibly just right uncanny feeling I found out exactly what I
    needed. I most indisputably will make certain to don’t forget this
    website and give it a look regularly.

    My blog post – Viking XL Keto BHB

  9. First of all I would like to say excellent blog! I had a
    quick question in which I’d like to ask if you do not mind.
    I was interested to find out how you center yourself and clear your
    thoughts before writing. I’ve had trouble clearing my mind in getting my ideas
    out there. I do enjoy writing however it just seems
    like the first 10 to 15 minutes are lost just trying to
    figure out how to begin. Any ideas or tips? Thanks!

  10. Thank you for your website post. Thomas and I have been saving for
    just a new ebook on this subject matter and your blog post has made us to save our money.
    Your notions really responded to all our issues.
    In fact, more than what we had known prior to when we stumbled on your fantastic blog.
    My partner and i no longer have doubts along with a troubled mind because you have attended to each of
    our needs here. Thanks

    My web blog … Vibrance Labs Ketorol

  11. Hi! I just wanted to ask if you ever have any
    issues with hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of
    hard work due to no backup. Do you have any solutions to
    stop hackers?

    Feel free to visit my website :: Bio Shed Keto

  12. After I originally left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on each time a
    comment is added I recieve four emails with the same comment.

    There has to be an easy method you can remove me from that service?
    Kudos!

  13. Hey there! This is kind of off topic but I
    need some help from an established blog. Is it difficult to set up
    your own blog? I’m not very techincal but I can figure things out
    pretty fast. I’m thinking about setting up my own but I’m not sure where to start.
    Do you have any points or suggestions? Many thanks

  14. Wow, superb blog layout! How long have you been blogging for?
    you make blogging look easy. The overall look of your website is wonderful,
    as well as the content!

  15. This is a good tip especially to those fresh to the blogosphere.
    Simple but very precise info… Many thanks for sharing this
    one. A must read article!

  16. I’ll immediately grasp your rss feed as I can not to find your email subscription link or newsletter service.
    Do you have any? Please permit me recognize so that I may subscribe.
    Thanks.

  17. You made some decent points there. I looked on the internet
    for more information about the issue and found most
    people will go along with your views on this site.

  18. I think what you published was actually very reasonable. However, consider this, what if you
    were to write a killer headline? I am not saying your content isn’t good, but suppose you added a post
    title that makes people want more? I mean NY Attorney General:
    Crypto Exchanges Vulnerable to Manipulation – BitcoinPrice.com is kinda vanilla.
    You ought to glance at Yahoo’s front page and see how they create article headlines to grab people
    interested. You might add a related video or a pic or two to grab readers
    excited about everything’ve written. In my opinion, it would
    bring your website a little bit more interesting.

    My homepage … Optimum Keto Diet

  19. Aw, this was an extremely good post. Spending some time and actual effort
    to generate a great article… but what can I say… I put things off a lot and
    never manage to get nearly anything done.

  20. I was just looking for this info for some time. After six hours of continuous Googleing,
    at last I got it in your web site. I wonder what is the lack of Google strategy that do not rank this type of informative sites in top
    of the list. Generally the top sites are full of garbage.

    Here is my blog: SynoGut

  21. Howdy! I know this is somewhat off topic but
    I was wondering which blog platform are you using for this site?
    I’m getting fed up of WordPress because I’ve had issues with
    hackers and I’m looking at alternatives for another
    platform. I would be fantastic if you could point me
    in the direction of a good platform.

  22. I know this if off topic but I’m looking into starting my own weblog and was wondering what
    all is required to get setup? I’m assuming having a blog like yours would cost a pretty penny?
    I’m not very internet smart so I’m not 100% positive.
    Any tips or advice would be greatly appreciated. Cheers

    Here is my page … TetraMale Infusion; koan.at,

  23. We absolutely love your blog and find most of your post’s to be just what I’m looking
    for. Does one offer guest writers to write content available
    for you? I wouldn’t mind publishing a post or elaborating on a
    lot of the subjects you write in relation to here.
    Again, awesome weblog!

  24. I really like your blog.. very nice colors & theme.
    Did you design this website yourself or did you hire someone to do it for you?
    Plz respond as I’m looking to construct my own blog and would like to find out where u got this from.
    thank you

  25. Superb blog! Do you have any tips for aspiring
    writers? I’m planning to start my own site soon but I’m
    a little lost on everything. Would you suggest starting with a
    free platform like WordPress or go for a paid option? There are so many options out
    there that I’m completely confused .. Any recommendations?
    Appreciate it!

  26. Heya i’m for the first time here. I found this board and I find It really useful & it helped me out much.

    I hope to give something back and aid others like you helped me.

  27. Hello! Quick question that’s entirely off topic.

    Do you know how to make your site mobile friendly? My site looks weird when viewing from
    my iphone. I’m trying to find a template or plugin that might be able to correct this
    problem. If you have any recommendations, please share.
    Thanks!

  28. Just about the most awesome companys around these days is this modest courages Urban TV. It is basically a stock to watch I believe you ought try it out. Its stock symbol is OTC:URBT URBT is URBT can make a headway within the digital money markets. The world awakened to the head line that the enormous URBT now eyes launching its cryptocurrency mining company. The company commemorates as it has mined its first dollar. I believe that We will have to change our thoughts away from short-term gain toward long-term investment & sustainable living, and generally have the next decades at heart with every assessment we make.

  29. We’re recommending that you add Urban TV to your portfolio. Urban Television Network Studios (OTC: URBT) is surely an attractive investment topic. One of America’s oldest minority operated tv broadcasting companys, Urban network television shares has stumbled badly in prior years. Its big turn-around led by way of brand-new Chief executive started in 2020, kicked the stock into a very high gear, then ran flat within the pandemic. If URBT stock breaks out of its holding pattern, it could make a nice portfolio addition and a money for shareholders. Urban Tv Network Company stock symbol URBT, has the posssibility to knock a Grand Slam. Among the high-possible, narrative-driven investments, only some can touch the blistering highs and suttle lows of Urban network television the addition of the up-and-coming crypto mining business and the new streaming company URBTPlus. We are looking for this investment to leap to ten dollars long-term play. We are advising that you add URBT to your own personal portfolio.

Leave a Reply

Your email address will not be published. Required fields are marked *