Bakkt recently decided to offer crypto holding services which means that the Bitcoin of a user will be stored in custody and the bitcoins will be discovered physically. The Bakkt warehouse is launched for institutional traders where they can store their Bitcoins. But there has been news of big firms being part of scandals and being part of illicit activities which cause harm to its users as well as lead to a bad reputation and lack of market value.
The biggest bank from the United States, JP Morgan faced ridicule from pro-Bitoiners as reports of an investigation against JP Morgan Chase started surfacing the news. The inquiry is happening because of the behavior of dozens of precious metals traders.
The investigators believe that the employees have been involved in the act of price-fixing of precious metals on thousands of occasions because of which both the market participants as well as JP Morgan’s clients suffered a loss.
The investigators said that the firm had been involved in the act of manipulating and fixing the prices for more than 8 years and that the investigators will look for every tiny detail to see how it started.
JP Morgan is known to be a vocal skeptic for cryptocurrencies. Jamie Dimon, CEO of JP Morgan, is amongst those who hate Bitcoin and everything about it. He expressed his disliking towards Bitcoin in 2017 when he labeled it as a fraud, and since then he’s been making comments about Bitcoin.
How the tables have turned
Recently the bank released its digital currency known as JPM Coin which soon gained criticism over its technical characteristics. The crypto enthusiasts noticed the precious metal scandal and couldn’t help it but reply to the news.
A Twitter analyst known as Rhythm went after them and summarized his thoughts and what was happening in a Tweet. This is a serious concern for people and shakes the ground as we see one of the biggest names in the finance world be a part of such frauds. This makes us question if the new project by Bakkt can be trusted or not and how secure the user data will be with the platform and its upcoming service.
U.S prosecutors just called JPMorgan’s precious metals trading desk a criminal enterprise after charging mutiple executives.
They were charged with wire fraud, bank fraud, and market manipulation.
But I was told by the CEO that bitcoin is the fraud. 🤔
— Rhythm (@Rhythmtrader) 16 September 2019