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> The SEC also charged Sun and his companies with fraudulently manipulating the secondary market for TRX through extensive wash trading... 1. How is this detec

by uticus 4y ago

> The SEC also charged Sun and his companies with fraudulently manipulating the secondary market for TRX through extensive wash trading... 1. How is this detected by the SEC? 2. Why isn't this something that is easily detectable by the average investor?

deleted 4y ago
[deleted]
nickff 4y ago
It looks like at least some of Justin Sun's suspicious behavior had been 'detected' by non-regulators some time ago: https://cryptoslate.com/justin-sun-backs-ftx-debt-token-fud-in-possible-securities-law-breach/ https://cryptoslate.com/justin-sun-backs-ftx-debt-token-fud-... That was from a quick Google search, so I'm sure there are many more accusations. It seems like the SEC has never been the 'first' to detect a fraud, and they've frequently ignored ones that have been pointed out to them (such as Madoff).
toomuchtodo 4y ago
Vendors + training https://www.coindesk.com/business/2020/02/10/inside-chainalysis-multimillion-dollar-relationship-with-the-us-government/ https://www.coindesk.com/business/2020/02/10/inside-chainaly... https://www.coindesk.com/markets/2019/07/12/irs-confirms-it-trained-staff-to-find-crypto-wallets/ https://www.coindesk.com/markets/2019/07/12/irs-confirms-it-...
MomoXenosaga 4y ago
The average "investor" is a gambling addict or financially desperate Reddit cryptocurrency poster. They don't care beyond NUMBER GO UP and I am certain Justin Sun knows that too.
- xeromal 4y ago
  It feels similar to those late note collectible coin programs that people buy into. "Get your pristine 1950 silver eagle collection for 5000$ before they're all sold out!"
- hackernewds 4y ago
  So is the average fiat user as well?
  - MomoXenosaga 4y ago
    "Know thyself". People need to admit to themselves that they are not smart financial gurus. Not everyone has that level of introspection.
Animats 4y ago
> Why isn't this something that is easily detectable by the average investor? Because much crypto trading is just transactions within some crypto exchange, and never makes it to the blockchain.
csomar 4y ago
justin sun has a rather bad reputation in the crypto industry. He was able to sustain his token during all that time, however.
- headsoup 4y ago
  Amazing that, almost like it wasn't quite genuine...
unsupp0rted 4y ago
Is “but every single crypto does extensive wash trading to fake volume” a viable defense?
- headsoup 4y ago
  Only if the follow up statement is "and I'm willing to cooperate in providing the evidence"

by uticus 4y ago

deleted 4y ago

[deleted]

nickff 4y ago

It looks like at least some of Justin Sun's suspicious behavior had been 'detected' by non-regulators some time ago: https://cryptoslate.com/justin-sun-backs-ftx-debt-token-fud-in-possible-securities-law-breach/ https://cryptoslate.com/justin-sun-backs-ftx-debt-token-fud-... That was from a quick Google search, so I'm sure there are many more accusations. It seems like the SEC has never been the 'first' to detect a fraud, and they've frequently ignored ones that have been pointed out to them (such as Madoff).

toomuchtodo 4y ago

Vendors + training https://www.coindesk.com/business/2020/02/10/inside-chainalysis-multimillion-dollar-relationship-with-the-us-government/ https://www.coindesk.com/business/2020/02/10/inside-chainaly... https://www.coindesk.com/markets/2019/07/12/irs-confirms-it-trained-staff-to-find-crypto-wallets/ https://www.coindesk.com/markets/2019/07/12/irs-confirms-it-...

MomoXenosaga 4y ago

The average "investor" is a gambling addict or financially desperate Reddit cryptocurrency poster. They don't care beyond NUMBER GO UP and I am certain Justin Sun knows that too.

xeromal 4y ago
It feels similar to those late note collectible coin programs that people buy into. "Get your pristine 1950 silver eagle collection for 5000$ before they're all sold out!"
hackernewds 4y ago
So is the average fiat user as well?
- MomoXenosaga 4y ago
  "Know thyself". People need to admit to themselves that they are not smart financial gurus. Not everyone has that level of introspection.

Animats 4y ago

> Why isn't this something that is easily detectable by the average investor? Because much crypto trading is just transactions within some crypto exchange, and never makes it to the blockchain.

csomar 4y ago

justin sun has a rather bad reputation in the crypto industry. He was able to sustain his token during all that time, however.

headsoup 4y ago
Amazing that, almost like it wasn't quite genuine...

unsupp0rted 4y ago

Is “but every single crypto does extensive wash trading to fake volume” a viable defense?

headsoup 4y ago
Only if the follow up statement is "and I'm willing to cooperate in providing the evidence"