Coinsquare CEO allegedly ordered its employees to make fake trades - page 2.

davis196

hero member

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What the hell is Coinsquare and why should we care about it?I've never heard anything about Coinsquare.
I guess it's one of the small cryptocurrency exchange platforms,that are going the same old shit many other trading platforms are going-faking trading volume to make them look bigger than they actually are.
I'm glad that they got caught and now it's time for punishment. Grin

This news makes me think that the cryptocurrency industry really needs more strict government regulations,all though I hate regulations,but I'm sick and tired of the trading platforms faking trading volume.

bbc.reporter

legendary

Activity: 3178

Merit: 1509

Quote from: mk4 on June 14, 2020, 09:05:46 PM

I'm really not surprised that some exchanges do this in my opinion(along with wash trading). If you sort the exchanges on Coinmarketcap through 24hr volumes, there are a good number of unknown exchanges near the top.

https://coinmarketcap.com/rankings/exchanges/

Agreed! Stricter regulations on the cryptospace are coming in Canada hehehe.

However, would everyone be surprised if some of the exchanges might be a part of a global money laundering ring? It appears anything is possible in the cryptospace.

pooya87

legendary

Activity: 3472

Merit: 10611

the story makes no sense to me. why would he need to tell anyone including his employees to make fake trade in his platform when he can do what all the other exchanges have been doing which is create a bot that creates as many trades as he wants to increase the shown volume? or simply do what shittier exchanges like Yobit do and bump the volume manually Cheesy

if there are such Emails then the owner is either a super noob or it may simply be asking them to use the exchange to get feedback or find bugs or something like that.

btc_angela

hero member

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Merit: 551

But we need to see the smoking gun here, yes we've heard this wash and fake volumes from exchanges in the past, even Chinese top exchanges have been accused in the past if you guys remember. But we need to see the evidences and see how it sits with the definition of wash trading, if there's such thing in cryptos (clear definition).

mk4

legendary

Activity: 2940

Merit: 3883

📟 t3rminal.xyz

I'm really not surprised that some exchanges do this in my opinion(along with wash trading). If you sort the exchanges on Coinmarketcap through 24hr volumes, there are a good number of unknown exchanges near the top.

https://coinmarketcap.com/rankings/exchanges/

Kemarit

legendary

Activity: 3080

Merit: 1353

According to this, (https://www.vice.com/en_us/article/5dz35q/cryptocurrency-exchange-wash-trading-coinsquare)

Coinsquare CEO himself, Cole Diamond ordered his employees to make fake trades to give the impression that their trading exchanges has indeed lots of liquidity and performing and doing good. There is supposedly a leaked emails, Slack messages.

Quote

According to the material, Coinsquare was "wash trading," which means it was automatically buying and selling currency between accounts it controlled. The news provides evidence of a practice that is often suspected in the cryptocurrency world but rarely proven, and can draw attention from regulators.

"Turn it back on," one seemingly angry March 2019 Slack message from Coinsquare CEO Cole Diamond to other employees of the company read, referring to the code that managed internal trades after an employee switched it off, fearing retaliation from regulators.

We all know that this has been practice by low-tier exchanges, but we don't have proof yet. Tried to search this supposedly emails and messages to really see first hand, but so far can't find any.

And if this is true then its pretty damning evidence against Coinsquare and we will see how OSC (Ontario Securities Commission) will do, what are the punishments etc.

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