Record-breaking $920 million fine! JPMorgan Chase admitted to manipulating U.S. precious metals and Treasury markets for eight years

The largest financial institution in the United States, JPMorgan Chase, has admitted to market manipulation and agreed to pay a hefty fine of $920 million on September 29th to settle charges of manipulating the U.S. precious metals and treasuries markets.

Market Manipulation for Eight Years

The U.S. Commodity Futures Trading Commission (CFTC) stated in a public announcement that JPMorgan Chase manipulated the market through "spoofing" for at least eight years, engaging in illegal trading to maximize its own profits. JPMorgan must pay a fine of $920.2 million, including restitution ($311 million), ill-gotten gains ($172 million), and civil monetary penalty ($436 million).

CFTC Chairman Heath P. Tarbert stated:

This record-setting enforcement action demonstrates that regardless of who attempts to manipulate the market, the CFTC will take all necessary measures to investigate and prosecute any illegal activity that may harm the financial system.

Spoofing

The CFTC pointed out that JPMorgan Chase traders engaged in illegal trading activities for eight years, involving tens of thousands of deceptive orders in precious metals and U.S. Treasury futures trading. Spoofing involves placing a large number of orders in the market through high-frequency trading, releasing false trading signals such as strong buy or sell orders to induce investors to make investment decisions, following which the orders are promptly canceled, and profits are made through opposing orders placed in futures and options.

The United States banned this illegal trading in 2010, following the financial crisis, with the signing of the Dodd-Frank Act by then-U.S. President Barack Obama, aimed at limiting systemic risks and curbing speculative trading by large financial institutions.

JPMorgan's Stance on Bitcoin

In fact, in 2017, JPMorgan Chase CEO Jamie Dimon heavily criticized Bitcoin, but this year, JPMorgan Chase has been involved in incidents of "money laundering" and "market manipulation," which is quite embarrassing.

In September 2017, Dimon stated: "Bitcoin is a fraud, worse than the tulip bubble." In October, he further emphasized: "If you're stupid enough to buy Bitcoin, you'll pay the price sooner or later." He warned all JPMorgan Chase traders that engaging in any Bitcoin transactions would result in immediate dismissal.

JPMorgan Chase Co-President Daniel Pinto attributed the illegal trading incident to individual actions, stating:

The illegal trading mentioned in the CFTC statement is completely unacceptable, and these traders no longer work for JPMorgan Chase.