Home News Bitcoin crumbled following Coinrail hack and investigation into market manipulations

Bitcoin crumbled following Coinrail hack and investigation into market manipulations

Last 2 days saw considerable bitcoin exchange rate adjustment. Bitcoin price went down from $7 600 to $6 770, as of press time. Bitcoin sales are largely attributed to the recent Coinrail exchange hack, strengthening cryptocurrency market regulation and U.S. Commodity Futures Trading Commission’s check of large cryptocurrency trading platforms for alleged exchange rate manipulation.

Coinrail is a comparatively small South Korean cryptocurrency exchange. However, it is still ranked among top 100 world’s largest crypto trading platforms. As reported yesterday by Coinrail’s team, the exchange started reviewing its system due to a “cyber intrusion”. As it became clear later, $40 000 000 worth of altcoins were stolen from its users’ accounts by unidentified cybercriminals.

Though the stolen amount is not too impressive compared to some previous large-scale hacks in the, it can still have significant repercussions. South Korea hosts the world’s third largest cryptocurrency trading market after Japan and the USA, and this is not the first instance of Korean exchanges falling victims to cyber criminals. The news of major exchange hacks result in both fear driven activity on the trading side and calls for more stringent regulation from the government.

Another significant factor that has been causing constant pressure on cryptocurrency trading activity and related exchange rates during this year is regulatory uncertainty. Negative statements concerning the status of bitcoin, the legality of ICOs and cryptocurrency exchanges, heard from the governments in different countries lead to considerable cryptocurrency dumps and price downfalls.

Many experts believe that June will be the decisive month in terms of cryptocurrency industry regulation in the USA. Institutional investors openly declare their intention to enter the cryptocurrency market, whereas Goldman Sachs launches Wall Street’s first ever digital assets trading desk.

However, ongoing investigations by both the Securities Exchange Commision (SEC) and the Commodity Futures Trading Commission (CFTC) continue to shake potential traders’ confidence in cryptocurrencies. On June 10, CFTC requested detailed reports on trading operations from Bitstamp, Coinbase itBit and Kraken exchanges in the course of investigation into the alleged market price manipulations through spoofing and fictitious transactions.

Despite all that, some positive news has been occurring about the cryptocurrency market too. For instance, the Communist Party of China hinted that the country’s authorities are up for reconsidering the ban on bitcoin trading by stating that the time is ripe for China to become a trendsetter at the crypto market.

Crypto enthusiast John McAfee, who has recently announced his intention to run for US presidency in 2020, urges bitcoin community to remain calm: