The Canadian regulator accuses Coinsquare of laundering

The Canadian regulator, the Ontario Securities Commission (OSC), accused Coinsquare, a cryptocurrency exchange, of manipulating the market and misleading its customers about the volume of trading.

The OSC claimed that Coinsquare, has been accused of laundering and reports of a hack, these would have “Behavior that violates Ontario’s securities laws”. The regulator also named Cole Diamond, CEO of founder Virgile Rostand, and Felix Mazer, Chief Compliance Officer, as the accused.

A hearing on this case will take place on July 21.

The Canadian regulator accuses Coinsquare of laundering
The Canadian regulator accuses Coinsquare of laundering

In your complaint According to the OSC, Diamond Rostand ordered to increase trading numbers in March 2018. Rostand then developed a solution that allowed The stock exchange starts the laundry trade. The laundry trade refers to inflate artificially Trading volume by carrying out large market operations with their own powers, it looks like this produced large transactions, but no asset changed hands. Between July 17, 2018 and December 4, 2019, Coinsquare operated around 840,000 laundries with an added value of around 590,000 bitcoins, said the OSC. Represented these more than 90% of the trading volume on the stock exchange.

Despite the concerns of the employees, Coinsquare continued to operate, manipulating the market and its customers, according to the OSC. The regulatory authority called Information about the business activities of the stock exchange, but Coinsquare has not reported any irregularities and said that “They took steps to prevent market manipulation and highlighted controls that they said could help detect such behavior.”

The OSC said that too Coinsquare was ended by an internal whistleblower after the employee expressed concern about the laundry trade.

Reddit users have raised suspicions of Coinsquare’s activity in two different cases. Vice also reported leaked documents showing Diamond’s orders.

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