An ex-J.P. Morgan trader Christian Trunz pleaded guilty to conspiracy and spoofing charges for manipulating the market. Department of Justice on Tuesday announced that Trunz admitted of taking thousands of orders of metals like Gold, Silver and other metals futures contracts that he did not intend to execute. Before Trunz, John Edmond also admitted for manipulating the market for years.
Department of Justice informed that Trunz had learned to spoof from senior traders and did it with their knowledge and consent. The sentence will be announced on 19th February. Trunz also resigned from the position of Executive Director at Bank.
However, the department of justice did not mention JPM bank, but Trunz has been an employee of the bank since 2007. And the spoofing occurred between July 2007 to August 2016.
Department of Justice also mentioned that admission of guilt is the result of the ongoing investigation by the FBI to crack down on the traders who manipulated the financial market. Spooging involves placing orders just to cancel them later to affect the price of the market. As of now, no official statement has been released from the bank.
SEC says No to BTC ETF
US Security Exchange Commission has not approved BTC ETF yet by citing the price manipulation reasons. Many from the crypto community also believe that if BTC ETF is approved, it will allow traders like JPM to manipulate the price of the cryptocurrency. As it has come to attention that the bank has been doing it with the metal market for years. On August 12 SEC announced that it had delayed its decision for listing VanEck to October 18.