4 ms·
Fraudulent misrepresentation is wrong. They didn't allow legitimate users to withdraw.
by mikelovenotwar 3y ago
Fraudulent misrepresentation is wrong. They didn't allow legitimate users to withdraw.
- johngladtj 3y agoNo disagreement on the withdrawal, that was definitely fraud and theft. On the wash trading I don't see any misrepresentation so long as the trades are actually happening.
- dundarious 3y agoWash trades misrepresent the trading volume, which is a key signal of the interest in and utility of a trading venue. Imagine eBay described itself to investors as having $100billion in trade occur on the platform, but in reality, well over $99billion of it was actually eBay employees posting (even real) items for sale that other eBay employees would then purchase, all on company time and with company cash. Even if the trades are honored and there were actual goods for sale in those listings, it is major securities fraud. If a real securities exchange does wash trades to inflate trading volume, it is major market manipulation/securities fraud (it's illegal if any market participant does it to inflate volume, not just the exchange itself). If a crypto exchange does it, at the very least the normative ethics of the industry should say "that's not good".