Global cryptocurrency exchange Bitfinex has partnered with a market surveillance company to try and stamp out market manipulation on its platform.
Market surveillance software provider Irisium announced on Wednesday that it is now working with Bitfinex to “identify and investigate manipulative behaviours and suspicious trading practices on its exchange.”
Business Insider reported last year on the prevalence of Wolf of Wall Street-style “pump and dump” scams, where traders artificially inflate the price of cryptocurrencies for their own gain.
While cryptocurrency markets are unregulated, US regulators the CFTC, the SEC, and FinRA have all warned investors to be wary of these scams. The SEC cited BI’s investigation into “pump and dumps” as part of its paper setting out concerns about potential bitcoin ETFs.