The entire crypto market took a huge hit yesterday, June 10, as rumours surrounding the US Commodity Futures Trading Commission (CFTC) launching a probe into four major cryptocurrency exchanges came to light. Bitcoin has lost about 10% of its value and the rest of the top 100 cryptocurrencies are all in the red over the last 24 hours. Total market cap has dropped over $20 billion in the same time period.
The exchanges being subpoenaed are Coinbase, Kraken, Bitstamp, and ItBit and are all being investigated for trading fraud in the crypto market. The exchanges have been ordered to hand over their complete trading data in order to assist the regulators in their bitcoin manipulation probe.
According to the Wall Street Journal, the subpoena was issued because the CFTC were unhappy that the CME had not succeeded in negotiating with exchanges for their trading data. The exchanges rejected the initial request but later submitted a portion of their trading data after CME compromised asking for a just a few hours of trading data instead of a full day’s activity in a given period.