Bitcoin-Rigging Criminal Probe Focused on Tie to Tether
- DOJ investigating whether Tether was used to prop up Bitcoin
- U.S. case part of broader review of possible coin manipulation
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As Bitcoin plunges, the U.S. Justice Department is investigating whether last year’s epic rally was fueled in part by manipulation, with traders driving it up with Tether -- a popular but controversial digital token.
While federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, they’ve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter.