Part 7/13:
The Checks and Balances: Market Corruption and Manipulation
For years, Wall Street’s history of corruption and market manipulation has been well-documented—from the Enron scandal and the 2008 financial crisis to ongoing SEC fines against major firms like Morgan Stanley and JP Morgan. The recent events underscore that these issues persist.
Fundamentally, certain institutional actors have managed to milk the system for their gain while exploiting delays, fees, and arbitrage opportunities. For instance, fee structures for Grayscale's GBTC currently reach up to 7 times higher than competitors, incentivizing traders to move out of GBTC into alternative assets, exacerbating the selling pressure.