Thin ice: comments Barry Silbert look like market manipulation

Experts in the securities laws of the United States claim that some of the comments on Twitter
Barry Silbert (Barry Silbert) in relation to price ETC, as well as his recent «professional advice», can cause increased attention of regulators, who are responsible for preventing manipulation of prices in the market.

«It’s risky,» said Schmelz trace (Trace Schmeltz), partner of the law firm Barnes & Thornburg. «I think that if I could give advice to Zilbert, I would suggest him to play the role of expert cryptocurrency industry instead of making statements to one particular cryptocurrency, where he keeps a lot of their funds.»

Robert long (Robert Long), a former senior lawyer of the Commission on securities and exchange Commission (SEC) and is currently a partner in the law firm of Bell Nunnally, said that the Commission commodity futures U.S. (CFTC) is considering cryptocurrency as a commodity and can «explore the cryptocurrency markets for manipulation and other fraudulent actions.» Long added that the Commission «may be interested in the review, given the nature and time of placement of some of them.»

In addition to Twitter, Zilbert recently started to actively use one social network arena. Openly discussing participation in the event DCG Ethereum Classic in Hong Kong from one of the subscribers, Zilbert wrote: «Pro tip: realize your ETC before the summit…». Such advice may be considered as advice on trading.

In relation to this review Schmelz said, «If you have a Fund that issues securities, and the cost of paper rises and falls depending on the price of the cryptocurrency, and you’re telling people to convert their assets, it may be a problem.» He also warned that this could be construed as «market manipulation».

Silbert is CEO of Grayscale, a subsidiary of Digital Currency Group (DCG). In April, the company launched an investment Fund Ethereum Classic, «are the first securities, the price of which depends on the course Ethereum Classic». The Fund is not registered with the SEC in accordance with the regulatory exemption, but are still subject to the laws of the United States securities laws.

These warnings should be paid attention to other players of the cryptocurrency market.

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