European firm Blockswater LLP, with headquarters in the U.K. and Austria, has filed a market abuse report against JPMorgan Chase (JPM) CEO Jamie Dimon for "spreading false and misleading information" about Bitcoin.
Earlier this month, Dimon caused Bitcoin to plummet in value when he called the cryptocurrency a "fraud" and "worse than tulip bulbs."
Blockswater is a algorithmic liquidity provider and said in a statement that it has decided to file a market abuse report with the Swedish Financial Supervisory Authority (FI) against Dimon.
Blockswater believes that Dimon violated Article 12 of the European Union's Market Abuse Regulation (MAR) by declaring that cryptocurrency Bitcoin was "a fraud."
The complaint filed with the Swedish authorities demonstrates how Dimon's statement negatively impacted "the cryptocurrency's price and reputation." The document also includes evidence that suggests Dimon "knew, or ought to have known, that the information he disseminated was false and misleading."
"Jamie Dimon's public assertions did not only affect the reputation of Bitcoin, they harmed the interests of some of his own clients and many young businesses that are working hard to create a better financial system," said Florian Schweitzer, managing partner at Blockswater, in a statement.
Schweitzer emphasized that JPMorgan traded Bitcoin derivatives for their clients on Stockholm-based exchange Nasdaq Nordic before and after Dimon's statements fueled volatility in the market. "That's a clear case of double standards and it smells like market manipulation," added Schweitzer.
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Blockswater noted that according to Article 12 of the European Union's Market Abuse Regulation prohibits the manipulation of markets through practices such as spreading false or misleading information. Nasdaq Nordic, where exchange-traded notes (ETNs) on Bitcoin are listed, defines the term "market manipulation" in accordance with the EU's definition as "dissemination of information through the media, including the Internet, or by any other means that gives, or is likely to give, false or misleading signals as to Listed Products, including the dissemination of rumours and false or misleading news, where the person who made the dissemination knew, or ought to have known, that the information was false or misleading."
Ignore the naysayers!
"We need to focus on important objectives for blockchain and cryptocurrencies and discard the noise from outsiders with their own agenda," said Eddy Travia, CEO of Coinsilium, an accelerator that finances and manages the development of early-stage blockchain technology companies.
He added the Bitcoin community has other concerns right now beyond Dimon.
"I don't think anyone can predict what governments will do regarding regulations in the cryptocurrency space in the future. We see governments taking a proactive approach and trying to build a sensible, principle-based regulatory framework like Gibraltar and once other jurisdictions will see the benefits of such an approach they may decided to follow a similar approach," he said. "The gloom and doom vision of the naysayers is just a distraction which will be quickly forgotten."
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