The Coinsquare exchange used an automated …
Coinsquare used automated software to inflate trading volumes – Motherboard
The management of the Canadian cryptocurrency exchange Coinsquare practiced laundering trading, writes Motherboard with reference to documents at its disposal. This includes emails, Slack messages, and other evidence incriminating Coinsquare CEO Cole Diamond.
As the journalists found out, automated trading software allowed Coinsquare to conclude many transactions for the purchase and sale of cryptocurrencies between their own accounts. Such practices help to increase the displayed activity on the trading platform, but are illegal under Canadian and American laws..
“Several of the documents in our possession indicate that Diamond insisted on the use of laundering trading, although the employees of the company did not like it. The documents confirm that Coinsquare used laundering trading at least in 2018 and 2019, “the publication says..
One of these letters was sent in March 2019. In it, the CEO reprimands one of the employees for turning off the trading rigging engine, not wanting to “test the Ontario SEC.” Diamond then stated that the employee should have thought about how the public perception of the exchange would change due to the sudden change in displayed liquidity. “Put it back on,” wrote the CEO.
“The final decision to proceed with the laundering sale was with Diamond,” Motherboard notes. At the same time, the exchange employees agreed to avoid the term “laundering trading” in their correspondence so as not to create compromising evidence on themselves..
Coinsquare was accused of possible fraud back in 2018. In particular, the issue caught the attention of Reddit users.
This year, the Ontario Securities Commission announced that cryptocurrency exchanges operating in the country are subject to securities laws. “Any actions leading to distortion of trading activity or overvaluation of a security or derivative instrument are prohibited,” the regulator wrote..
South Korea to conduct face-to-face screening of cryptocurrency exchanges Communications Commission and Ministry of Science and Technology of South Korea announced the start of a joint face-to-face…
Overstock opens an exchange for legal trading of cryptocurrency tokens Blockchain startup TØ, a subsidiary of Overstock, launches the first…
SEC reminded cryptocurrency exchanges of the need to enter the legal field The US Securities and Exchange Commission issued a warning about exchanges…
Nasdaq: We Partner With Seven Cryptocurrency Exchanges Seven Cryptocurrency Platforms Have Been Selected By The Nasdaq Exchange To Date To Use…
Media: KuCoin Exchange imposes services to increase trading volumes under the threat of token delisting Delisting 16 tokens from KuCoin at the end of 2018…