Bitcoin Is The Fraud? JPMorgan Metals Desk Fixed Gold Prices For Years (#GotBitcoin?)
Trump Administration Unable And Unwilling To Prosecute Banksters. Bitcoin Is The Fraud? JPMorgan Metals Desk Fixed Gold Prices For Years (#GotBitcoin?)
The United States’ largest bank faced fresh ridicule from Bitcoin (BTC) circles this week after prosecutors said traders had conducted more market fraud.
As Bloomberg reported on Sept. 16, JPMorgan Chase is facing an inquiry over the behavior of at least a dozen precious metals traders.
JPMorgan Performed “Thousands” Of Illegal Moves
According to investigators, the employees willfully engaged in price-fixing of precious metals on thousands of occasions. Both market participants and JPMorgan’s own clients suffered losses as a result, they claim.
“Based on the fact that it was conduct that was widespread on the desk, it was engaged in thousands of episodes over an eight-year period… We’re going to follow the facts wherever they lead, whether it’s across desks here or at any other bank or upwards into the financial institution,” Bloomberg quoted Assistant Attorney General Brian Benczkowski as saying.
JPMorgan is well known as being one of the more vocal skeptics of cryptocurrencies. CEO Jamie Dimon became notorious for his soundbites, which began in 2017 when he labeled Bitcoin a fraud in itself.
Dimon since appeared to have a change of heart, pledging not to discuss Bitcoin again in public, while denying he disliked it in private comments to Cointelegraph.
Bitcoin, Bankers And Fraud
More recently, the bank released its own digital currency offering, JPM Coin, which gained similar criticism over its technical characteristics.
The irony of the precious metals scandal was thus not lost of crypto commentators.
“They were charged with wire fraud, bank fraud, and market manipulation. But I was told by the CEO that Bitcoin is the fraud,” Twitter analyst known as Rhythm summarized.
JPMorgan is not the only bank to issue warnings over cryptocurrency’s alleged fraudulent nature while being embroiled in legal turmoil.
In 2018, Dutch institution Rabobank claimed Bitcoin contained money laundering compliance hazards. Subsequently, authorities fined it $369 million for money laundering.
Bitcoin ‘Can Be’ A Reliable Financial Instrument After All: Mark Cuban
One of the most outspoken critics of Bitcoin (BTC) has delivered mixed messages about its reliability as a financial asset.
In comments to Forbes published on Dec. 10, Mark Cuban appeared to contradict himself on Bitcoin’s overall utility.
When asked whether or not the cryptocurrency could become a “reliable financial instrument,” the Dallas Mavericks owner gave two differing responses. “Not a chance,” he wrote at first. Subsequently, he added, “It is a collectible. If you consider art or gold a viable stable financial asset, then yes. It can be.”
Fiat fails To Comfort Bitcoin Deniers
While Cuban complained that investors were put off Bitcoin due to the difficulty in understanding how it works, the ambiguity of the comments highlighted what has become a common problem for Bitcoin skeptics — explaining why they are skeptical.
In a telling example last year, infamous naysayer Jamie Dimon, CEO of JPMorgan, told a Cointelegraph reporter that he was “not a skeptic” of Bitcoin when pushed to explain his previous claim it was a fraud.
Cuban appeared to set Bitcoin and gold on an unequal footing with fiat currency, something which Bitcoin proponents conversely deny.
As Cointelegraph often notes, figures such as Saifedean Ammous, author of “The Bitcoin Standard,” argue that it is Bitcoin’s limited supply which is among its biggest assets. Fiat, by contrast, faces unlimited manipulation and inflation, destroying value for those who hold or “collect” it.
Cuban has a history of rubbishing Bitcoin, in September suggesting he would prefer bananas over Bitcoin holdings.