The New York Times is reporting that a growing number of virtual currency investors are concerned that the prices of Bitcoin and other digital tokens have been artificially propped up by the popular exchange Bitfinex:
In December, Bitfinex was subpoenaed by the Commodity Futures Trading Commission, a United States regulatory agency. The news, first reported by Bloomberg on Tuesday and confirmed by a source familiar with the subpoena but not allowed to publicly discuss an ongoing investigation, led to a sell-off in most virtual currencies.
I’ll have more to say about this in the near future, especially what it could mean for lingering questions of crypto-currency liquidity. In any event, the full story can be found here.