Fraud in cryptocurrency markets

Have you ever invested in crypto based on promising analysis, growing community support, and steadily climbing prices, only to lose money? This is a common story in the crypto community, where sophisticated market manipulation schemes are carried out.

In our latest journalists’ roundtable, Claus Rerup, Professor of Management at Frankfurt School of Finance & Management, and Bryan Spencer, Assistant Professor in the Department of Strategy, Entrepreneurship and Management at Alberta School of Business, presented their latest research focussing on secret manipulation of cryptocurrency markets through the spread of invalid information. The authors studied a crypto-investment community that fell victim to a series of fraudulent schemes.

In this video, Professor Bryan Spencer explains how the scammers used classic ‘pump and dump’ tactics with lesser-known cryptocurrencies and how fraud works in crypto markets.