The Ontario Securities Commission (OSC) has accused the Canadian crypto trading platform Coinsquare of inflating its trading volumes.
According to the regulator, the exchange has reportedly inflated its trading volumes, a technique known as wash trading, in order to manipulate the market.
Particularly, the OSC has accused the platform's CEO, Cole Diamond, its founder Virgile Rostand and executive Felix Mazer of intentionally manipulating Coinsquare's trading volumes and of "authorizing, permitting or acquiescing in this conduct" by company employees.
In particular, Diamond allegedly encouraged employees to carry out this strategy, while Rostand designed and implemented the code that allowed this activity.
According to the regulator, 90% of the platform's trading volume between July 2018 and December 2019 is fake. While between July 17, 2018 and December 4, 2019 about 840,000 laundering transactions worth around $5.4B were conducted.
The OSC must now determine whether a settlement agreement between the watchdog and Coinsquare must be approved. The decision will be made at a hearing on July 21, 2020.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.