What are crypto pump-and-dump groups? Are they legal?

Pump-and-dump operations, which fraudulently manipulate prices by disseminating false information, have existed in economic contexts since at least the 1700s. For instance, con artists with shares in the South Sea Company started making false statements about the business and its revenues in the beginning of the eighteenth century. The plan was...

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CFTC’s Enforcement of Fraudulent and Manipulative Pump-and-Dump Scheme in Crypto Commodities | Cadwalader, Wickersham & Taft LLP

The Commodity Futures Trading Commission (“CFTC”) has two levels of jurisdiction under the Commodity Exchange Act (“CEA”). First, there is an exclusive (or regulatory) jurisdiction over “derivatives” on “commodities,” where the CFTC can regulate how, where, by whom and when derivatives trade. Derivatives traditionally include swaps, options and futures on commodities.  In...

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CFTC Ends McAfee’s Crypto Pump-and-Dump Charges, Fined Bodyguard $290K

The civil cases in the US against deceased tech mogul John McAfee came to an end as the Commodity Futures Trading Commission (CFTC) dropped the case against him for cryptocurrency pump-and-dump. Take Advantage of the Biggest Financial Event in London. This year we have expanded...

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How to identify and avoid a crypto pump-and-dump scheme?

Educating oneself about the crypto ecosystem is crucial for investors to pursue during a bear market while awaiting a bull cycle. That being said, having a good understanding of crypto investment entails keeping an eye out for fraudulent projects that threaten to drain assets overnight, a.k.a. pump-and-dump schemes.Pump-and-dump in crypto...

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