Cryptocurrency traders were seemingly undeterred Thursday by Commodity Futures Trading Commission publications warning of pump-and-dump schemes. Eighty-nine percent of the top 100 cryptocurrencies trended up on the day, according to CoinMarketCap.com.
The CFTC issued a Customer Protection Advisory alerting the market to price manipulation in the “largely unrelated cash market for virtual currencies,” particularly among “thinly traded or new ‘alternative’ virtual currencies, digital coins or tokens” and on platforms offering sundry coin pairings.
Described by the commission as “prevalent,” the mostly anonymous schemes are coordinated in chatrooms or messaging apps, coordinating the simultaneous buy-in of thousands of participants to create false demand, hype unaware investors, and sell for profit. Some circulate fake news reports about major companies getting involved in a particular currency.
Often, the buy-and-sell cycle is over in a matter of minutes.
The CFTC confirmed its authority to enforce anti-fraud and manipulation regulation in virtual currency cash markets and urged investors to report suspected schemes. In the meantime, the commission advised not to buy into digital currencies off social media tips or get-rich-quick ads.
Related Links:
Bitcoin Regulation Conundrum, Explained
Want Your Stock To Rally? Just Mention 'Bitcoin' Or 'Blockchain'
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
