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The trick to wash trading on CoinBase is (or was) to be on the inside: > The order also finds that over a six-week period—August through September 2016—a forme
by PragmaticPulp 5y ago
The trick to wash trading on CoinBase is (or was) to be on the inside:
> The order also finds that over a six-week period—August through September 2016—a former Coinbase employee used a manipulative or deceptive device by intentionally placing buy and sell orders in the Litecoin/Bitcoin trading pair on GDAX that matched each other as wash trades. This created the misleading appearance of liquidity and trading interest in Litecoin.
https://www.cftc.gov/PressRoom/PressReleases/8369-21 https://www.cftc.gov/PressRoom/PressReleases/8369-21
I wouldn’t be surprised if the wash trading on these unregulated exchanges followed a similar pattern where insiders were largely using the system to their advantage and using their insider knowledge or connections to (try to) hide it.
- loeg 5y agoSure, although not part of the period covered by this paper: > Our data cover the period from 00:00 July 09th, 2019 (when TokenInsight started to collect transaction information from these exchanges) to 23:59 November 03rd, 2019 (the time we wrote the first draft).
- bugzz 5y agoYeah that's a pretty well known case, specific to Litecoin. Also crypto has come a long way since 2016
- PragmaticPulp 5y agoI imagine the fraudulent schemes have also come a long way since 2016. Given the volume of trading that happens on unregulated exchanges, I don’t see why anyone would think the amount of fraud has been decreasing as unregulated activity is increasing.
- bugzz 5y agoSure but I was responding to a comment regarding Coinbase.