Canadian Regulator Accuses Coinsquare of Wash Trading


Canadian regulator Ontario Securities Commission (OSC) has accused embattled exchange Coinsquare of market manipulation and misleading clients about trading volumes.

The OSC alleged Coinsquare, which has been accused of wash-trading and reports of a hack, had “engaged in conduct contrary to Ontario security laws.” The regulator also named founder Virgile Rostand, CEO Cole Diamond and chief compliance officer Felix Mazer as respondents. 

How To Get Free Crypto  

A hearing regarding the case will be held on July 21.  

In its complaint, the OSC said Diamond directed Rostand to inflate trading numbers in March 2018. Rostand then came up with a solution that allowed the exchange to begin “wash” trading. Wash trading refers to artificially inflating trading volumes by executing large market trades into their own orders so it seems like large transactions occurred but no assets changed hands. Between July 17, 2018 and Dec. 4, 2019, Coinsquare did about 840,000 wash trades with an aggregate value of around 590,000 Bitcoins, the OSC said. These represented over 90% of trading volume on the exchange. 

Despite concerns from staff, Coinsquare continued its wash-trading activities and thus manipulated the market and consumers, said the OSC. The regulator requested information on the exchange’s trading activity but Coinsquare did not report any irregularities and said it is “taking steps to prevent market manipulation and highlighted controls it claimed could help detect such conduct.”

The OSC also said Coinsquare terminated an internal whistleblower after the employee raised concerns about the wash trading. 

Reddit users became suspicious of Coinsquare’s activity in two different instances. Vice also reported on leaked documents that showed Diamond ordering

Go to Source
Author: Emilia David

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.