CoinSquare, a Canadian Cryptocurrency exchange allegedly conducted wash-trading to inflate they volume transactions.
In a new report from Motherboard published last Friday containing leaked emails and slack messages, the Canadian firm allegedly used automated trading software in clear attempt to inflate their volume transactions.
To understand the report is necessary to understand what is the thing wash trading!!
Wash trading ???is a fraudulent tactic used to impersonate the public and the coin metrics volume, which an entity in this case Crypto exchange, use accounts that controls on the company to buy and sell assets between them with clear intent to look bigger on the industry and impersonate traders.
Coinsquare used the wash trading technique accordingly to the report from Motherboard, and that behaviour is considered illegally under the U.S Securities Law and the illegality occurred from 2018 to 2019 which was causing some uncomfortable environment to employees of the exchange.
The attempt to boost artificially trading volumes are used immense on Crypto companies trying to look good from traders to impersonate and take them to start using their platforms. There are several companies taking that kind of fraudulent behaviour but soon it gets uncovered by some of their collaborators who are not happy with the situation and I believe it was the same happened on Coinsquare, one of them Leaked the documents!
To turn even worse the situation from Coinsquare new guidance from Canada authorities show that are large number of Crypto business on the country may fall under the Canadian Securities laws, which one of the crucial topic to pass on them is appearance on trading activity!
There will have always companies trying to shortcut in the crypto space, that is bad for business as you will realize when you invested your money on them that they aren't what it claim to be, but that will be late and your money will be at danger as the user always pay the trading fees!
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