Tales from the Crypto: CFTC puts 'Bounty' on the heads of pump-n-dump groups

Well looks like the Commodities Futures Trading Commission of the good ole US of A is getting serious about price manipulations in the world of cryptocurrencies. Very recently releasing a small write up on their website about the matter.

The U.S. Commodity Futures Trading Commission (CFTC) is advising customers to avoid pump-and-dump schemes that can occur in thinly traded or new “alternative” virtual currencies and digital coins or tokens. Customers should not purchase virtual currencies, digital coins, or tokens based on social media tips or sudden price spikes. Thoroughly research virtual currencies, digital coins, tokens, and the companies or entities behind them in order to separate hype from facts.

Pump-n-dumps, as they are widely known, are pretty plain to see on a daily basis. Sudden price increase over a few minutes and then a dump afterwards are patterns that are quite prevalent. How many of these patters are actually PND related is unknown but obviously it's a big enough problem for the CFTC to get involved.

Now for the good part:

Virtual currency and digital token pumpand-dump schemes continue because they are mostly anonymous. If you have original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more, you could be eligible for a monetary award of between 10 percent and 30 percent. For more information, or to submit a tip, visit the CFTC’s whistleblower.gov website.

So for any of you snitches and rats out there that feel like partnering up with the CFTC and possibly getting paid in the process, now's your chance!

Good to see this sort of thing is being taken more seriously, although I have my doubts how much impact it will have. If you want to read the full release, it can be found here.