Jamie Dimon Faces Market Abuse Claim Over "False, Misleading" Bitcoin Comments

A week after Jamie Dimon made headlines by proclaiming Bitcoin a "fraud" and anyone who owns it as "stupid," the JPMorgan CEO faces a market abuse claim for "spreading false and misleading information" about bitcoin.

Unless you have been living under a rock for the past week, you will be well aware of JPMorgan CEO Jamie Dimon's panicked outburst with regard the 'fraud' that Bitcoin's 'tulip-like' bubble is. To paraphrase:

"It’s a fraud. It’s making stupid people, such as my daughter, feel like they’re geniuses. It’s going to get somebody killed. I’ll fire anyone who touches it."

Image courtesy of Cointelegraph

One week later, an algorithmic liquidity provider called Blockswater has filed a market abuse report against Jamie Dimon for "spreading false and misleading information" about bitcoin.

The firm filed the report with the Swedish Financial Supervisory Authority against JPMorgan Chase and Dimon, the company's chief executive. Blockswater said Dimon violated Article 12 of the European Union's Market Abuse Regulation (MAR) by declaring that cryptocurrency bitcoin was "a fraud".

The complaint said Dimon's statement negatively impacted "the cryptocurrency's price and reputation".

 

It also said 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.

Blockswater said JPMorgan traded bitcoin derivatives for their clients on Stockholm-based exchange Nasdaq Nordic before and after Dimon's statements (as we detailed here), which Schweitzer said "smells like market manipulation".

Blockswater works with blockchain-based assets based in London and Austria. Its full complaint is below:

Blockswater Files Market Abuse Report Against Jamie Dimon in Stockholm
Blockswater LLP believes that Dimon violated EU’s Market Abuse Regulation by "spreading false and misleading information" about bitcoin

 

STOCKHOLM/NEW YORK/LONDON/VIENNA, September 21, 2017 - Algorithmic liquidity provider Blockswater LLP filed a market abuse report with the Swedish Financial Supervisory Authority (FI) against JPMorgan Chase and Co. CEO Jamie 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 lists 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,” says Florian Schweitzer, managing partner at Blockswater. 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.”

 

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 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.”

 

FI confirmed receipt of the report but did not comment further except to state that the financial markets regulator "will handle it according to [FI's] procedures."

 

Blockswater LLP is an algorithmic liquidity provider for blockchain-based assets based in London (UK) and Vienna (Austria).
 
 

Comments

TheDude1224 VD Thu, 09/21/2017 - 11:17 Permalink

Correct! JP Morgan CEO, Dimon, knew that his people would jump all over the false dip and capitalized. However, that doesn't make what Dimon said wrong either! Bitcoin is a scam, JP Morgan Chase is a scam, they are both frauds! Bitcoin will crash and burn, JP Morgan Chase will definitely crash and burn, and the financial institutions we know to today will be a fun history chapter in our future generation's text books!

In reply to by VD

IH8OBAMA BennyBoy Thu, 09/21/2017 - 11:35 Permalink

Crytos aren't much different than penny stocks.  The only difference is that a penny stock in many cases has some money and a slim chance at making earnings for the shareholders.  Bitcoin has no such chance.  It starts out worthless and will always be worthless with no chance of ever being anything else.  At some point in the future when cryptos run out of "greater fools", investors (or are they speculators?) will come to the reaization that they are holding nothing but thin air and will all race to the exit.  Few will get out the door.Until then, good luck cryptoers.  Be nimble, be quick.

In reply to by BennyBoy

Gaius Frakkin'… IH8OBAMA Thu, 09/21/2017 - 12:32 Permalink

You could say the same about any money, retard.Goldbugs and central banks don't hoard gold so they can make class rings out of it. The whole point of the gold coin is for trade, not use.Most people don't even want the real thing anyway, just a paper or digital receipt for it, which is why the price will always be manipulated so easily.

In reply to by IH8OBAMA

SILVERGEDDON tmosley Thu, 09/21/2017 - 20:48 Permalink

tmosley, you were always the pumper of anything market manipulated. You pumped silver like a crack whore spreading for a Benjamin until you lost your ass at the market peak. Then, you went dark, and disappeared for a few years, emerging phoenix resplendent to pump the living rat fuck out of Bitcoin, like Fonestar reincarnated. Can't wait for the crypto crash, and for you to crawl off to your hole licking your wounds again for a few years, you disingenuous Schopenhauer twat. Oh, as an afterthought - I was referring to the stupidity of anyone accepting paper or digital receipts as proof of metals ownership over having personal control of physical metals - that is even more incredibly retarded than you are.  

In reply to by tmosley

TheDude1224 kahplunk Thu, 09/21/2017 - 12:17 Permalink

"People always complain about the bankers yet here is an alternative and you fucking loosers turn it down."Bitcoin is not an alternative, it is a pyramid scheme. Go look at the history of the South Sea Company, and you will see Bitcoin is just a new age reincarnation of a fraud that was perpetuated over 200 years ago. There is no value to back Bitcoin, it is all based on a ridiculous notion that the faith in crypto is somehow better than the faith in the dollar. They both are sucker's bets.

In reply to by kahplunk

Calfrope TheDude1224 Thu, 09/21/2017 - 12:00 Permalink

Thedudett...do a little research ...the word is JP Chase has some 600 million ozs of physical silver...so let's just say silver takes off to the moon...$30-$35 an oz. and for stackers that's not even close to a moon shot...but I digress....that would double their investment...pretty much anything else above that is just icing on the cake for the SHMUCKS...just saying ...

In reply to by TheDude1224

OverTheHedge abyssinian Thu, 09/21/2017 - 13:01 Permalink

This is an outstanding story :-)Jaimie Dimon, the ultimate liar, being taken to task for telling the truth!The cognitive dissonance here is frightening. How will our young hedgers cope? Will they hate Jamie, or will they praise Jaimie, or will they do both? Tune in next week when Janet Yelln calls for an audit of the Fed.Does anyone remember Jamie and his Magic Torch? https://m.youtube.com/watch?v=XMNG2LtF41o

In reply to by abyssinian

Son of Captain Nemo Thu, 09/21/2017 - 11:06 Permalink

"Jamie Dimon Faces Market Abuse Claim Over "False, Misleading" Bitcoin Comments"

My G-g-g-o-o-o-o-D!

This must mean that Bitcoin has the full "faith and credit" backing of the United (Western Central Banking) States of EUAmerica!...

I'm verklempt!... Talk amongst yourselves!!!

P.S.

Where do I open my wallet to "mine" my first Buttcoin?!!!

Justin Case tmosley Thu, 09/21/2017 - 13:10 Permalink

Ah it's against they law to be a "hypocrite". Okie dokie, didn't know that one. So he's unethical. Judging by the billions that JPM has been fined over the years, means absolutely -0-. He's part of the untouchables.Goldman Sachs was touting $150.00/bbl oil back a few years ago while they were piling on the shorts. GS was also selling MBSs and taking short positions on them. You can expect the same dog and pony show with Dimon and JPM. Nuttin.

In reply to by tmosley