The company behind a virtual currency that was used to fund some of the biggest crimes in the world was founded by a convicted felon who is also on the FBI’s most wanted list.
But as its market value plummeted, virtual currency companies in the United States were scrambling to address the concerns of investors, and some had to step up to take the risks of investing in their companies.
One of the latest names on the list is Bitstamp, the largest digital currency exchange that has a market value of more than $1.4 billion.
Bitstamp has not been shy about responding to recent market volatility, and it was a no-show on Monday when the Nasdaq stock market opened for trading.
The company issued a statement to CNBC, saying the company was “still working through some issues and has not yet issued any trading orders.”
Bitstamps stock dropped more than 1 percent on Monday, but its shares are trading at more than three times the price of its rival, Kraken, at the time of writing.
A virtual currency exchange like Bitstamps could potentially face legal troubles if it is found to have engaged in illegal activities, including money laundering.
If the company were to be found to be involved in money laundering, it would be at risk of criminal prosecution, including fines and jail time.