Briefing

OSC accuses Coinsquare of inflating trading volume using fake trades

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The Ontario Securities Commission is alleging that the Toronto cryptocurrency exchange also engaged in market manipulation, misled its clients and retaliated against a whistleblower. The regulator is holding a hearing on July 21 to discuss an undisclosed potential settlement with Coinsquare. The company did not immediately respond to The Logic’s request for comment. (The Logic)

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Talking point: Coinsquare is one of the largest and best known cryptocurrency exchanges in Canada. It was most recently valued at  $430 million in a 2018 round led by Canaccord Genuity. In June, Vice reported that Coinsquare was inflating its trading volumes, according to leaked internal documents, and that the OSC had visited the company’s offices. This isn’t just about Coinsquare though. The OSC brought the proceeding to “send a message to other market participants in the crypto asset sector that deceptive conduct will not be tolerated in Ontario’s capital markets.” In June, the commission released a report into the collapse of Quadriga, another cryptocurrency exchange, stating that the firm fell apart due to fraud.