Jamie Dimon faces market abuse report after his comments about bitcoin

Courtney Goldsmith
Follow Courtney
Jamie Dimon Testifies At Senate Hearing On JPMorgan Chase
Jamie Dimon is the chief executive of JP Morgan Chase (Source: Getty)

Blockswater, an algorithmic liquidity provider, 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 JP Morgan 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 influential executive last week slammed cryptocurrencies, pushing the digital currency to a three-week low.

Dimon said he would fire an employee who traded in cryptocurrencies for being "stupid".

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 JP Morgan traded bitcoin derivatives for their clients on Stockholm-based exchange Nasdaq Nordic before and after Dimon's statements, which Schweitzer said "smells like market manipulation".

Blockswater works with blockchain-based assets based in London and Austria.

JP Morgan Chase declined to comment.

Read more: Bitcoin faces another split as scaling debate rages

Related articles