Cryptocurrency news

The Coinsquare exchange admitted OSC charges of organizing fictitious trading

The Coinsquare exchange admitted OSC charges of organizing fictitious trading

Canadian cryptocurrency exchange Coinsquare admitted charges of the Ontario securities Commission (OSC) in the organization of fictitious trading. Exchange managers will leave their positions and pay a $1 million fine.

Earlier, the canadian regulator accused Coinsquare CEO Cole Diamond, exchange founder Virgile Rostand and regulatory compliance Director Felix Mazer of artificially increasing trading volumes. The hearing was held on July 21, 2020.

Coinsquare executives admitted to manipulating the market in 2018 and 2019. In addition, they confirmed that about 840,000 fictitious transactions worth 590,000 BTC (about $5.5 billion) were made on the platform to create the appearance of active trading. According to the regulator, these transactions had no economic value.

It was decided to suspend diamond and Rostand from their positions of Directors for three years, so that they could not manage the exchange during the specified period. Mazer was removed from the post of Manager for one year and has already voluntarily paid a $50,000 fine. Diamond agreed to pay a $1 million fine, and Rostand agreed to pay $900,000. In addition, they will jointly pay $300,000 to cover OSC expenses related to the investigation.

OSC accused the Coinsquare exchange of rigging trades after Vice published it last month. It claimed that the management of Coinsquare deliberately encouraged employees of the exchange to make fictitious transactions. This information was based on emails, Slack messages, and other files received from the informant.

Last month, the Ontario securities Commission said that The quadrigacx cryptocurrency exchange, which closed last year, was a pyramid scheme, and its founder, Gerald Cotten, was a fraudster.