On 22nd February, Corporate Counsel in the US reported that the CFTC had issued a customer protection warning about pump-and-dump virtual currency schemes.  It says that, for the uninitiated, the CFTC outlines in its advisory what investors need to watch out for: “Pump-and-dump schemes are mostly anonymous and are organized in public chat rooms or via mobile messaging apps. They are co-ordinated efforts to create phony demand (the pump) and then sell quickly (the dump) to profit by taking advantage of traders who are unaware of the scheme”.  The advisory goes on to say that this type of manipulation is plaguing the virtual currency space and typically occurs on platforms that offer a variety of coin pairings.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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