As cryptocurrency markets continue their relentless evolution in 2025, an unsettling trend has emerged: market manipulation schemes are becoming increasingly coordinated. These operations, once the domain of lone actors or small groups, now appear to be orchestrated by sophisticated networks with substantial resources. This shift is raising alarms about the integrity of markets that are already under scrutiny.
A New Era of Manipulation
Historically, market manipulation has been a constant shadow over trading systems, dating as far back as ancient Greece. Fast forward to the present day, and the crypto industry — a multi-trillion-dollar asset class — has become a fertile ground for such schemes. The fragmented nature of crypto markets, combined with the anonymity provided by decentralized platforms, creates a perfect storm for manipulators.
“Crypto markets are more liquid than ever but also deeply fragmented,” explains blockchain analyst, Sarah Mitchell. “This fragmentation offers ample opportunities for those who know how to exploit it.”
The Mechanics of Modern Schemes
Today’s manipulators aren’t just rogue traders; they are well-organized groups leveraging technology and cross-platform access to execute complex strategies. These schemes often unfold in private Telegram groups where insiders coordinate their movements, targeting less liquid markets for maximum impact.
In February 2025, analyst James CryptoGuru flagged potential manipulation risks tied to spot Bitcoin ETFs. He warned that such instruments could exert downward pressure on Bitcoin prices, primarily when traditional financial markets are closed, creating strategic openings for major players to accumulate assets at discounted rates. This concern is echoed in our analysis of Bitcoin ETFs and their impact on market dynamics.
The interconnectedness of crypto markets means the ripple effects of manipulation can be profound. A disturbance in one centralized exchange can cascade through APIs to affect other platforms, creating arbitrage opportunities that manipulators exploit with ease.
The Gray Area of Legality
Interestingly, not all forms of market manipulation are technically illegal. When a major fund buys tokens through a public wallet to attract attention, is it manipulation or savvy marketing? The line blurs further when market makers are involved in actively supporting a token’s price at the behest of a project.
“The moral code in crypto is murky, to say the least,” says financial ethics expert, Daniel Rogers. “While some actions clearly violate rules, others operate in a gray area where legality and ethics might diverge.”
Challenges for Exchanges
Exchanges, the front lines in the battle against manipulation, find themselves in a perpetual game of whack-a-mole. They are investing in AI-powered tools to detect suspicious activities, yet the sheer scale and sophistication of current schemes make prevention challenging. However, collaboration among exchanges is proving to be a promising strategy. When Bybit faced a hack earlier this year, other platforms stepped in to assist, showcasing the power of collective action.
As manipulation tactics evolve, the crypto community’s response is crucial. Collective vigilance, coupled with data sharing and early detection, is emerging as the most effective defense against these increasingly coordinated threats.
Looking Ahead
With each passing day, the crypto market’s complexity grows, and so does the sophistication of those seeking to exploit it. While manipulating markets might be relatively straightforward, evading detection is becoming more challenging. The crypto world must continue to adapt and innovate in its defensive strategies, raising questions about whether this trend of increased manipulation can be curbed or if it’s an inevitable aspect of a decentralized future. The stakes are high, and the world is watching. For insights into how institutional products like Grayscale’s Bitcoin Trust are shaping the market landscape, see our coverage of Grayscale’s dominance in ETF revenue.
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Further Reading
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- Crypto Coalition Tells SEC Staking Is ‘Essential Good,’ Not a Security
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
