Canadian regulator accuses Coinsquare of fraud

The Ontario Securities Commission (OSC) has accused the Canadian cryptocurrency exchange Coinsquare of falsifying information abouttrading volumes.

According to the published document, the largest cryptocurrency exchange in Canada significantly overestimated its data in order to manipulate the market.

The Canadian regulator has accused the generalCoinsquare director Cole Diamond, exchange founder Virgil Rostand and CEO Felix Meiser in deliberately manipulating Coinsquare's trading volumes and “encouraging or approving such behavior” by company employees.

Diamond reportedly encouraged employees to manipulate data, while Rostand developed and implemented code to enable the laundering trade.

OSC believes that about 90% of the tradeturnover of the exchange in the period from July 2018 to December 2019 are fake. Between July 17, 2018 and December 4, 2019, there were approximately 840,000 money laundering transactions, worth approximately $ 5.4 billion.

The first court hearing, scheduled for July 21, will determine whether the interests of exchange users will be taken into account in the transaction between the regulator and the management of the crypto exchange.

Coinsquare's first scam reportsappeared in mid-June. Then the Motherboard edition, referring to screenshots of the working chat from the exchange employees, found that the Coinsquare management was actively using a fraudulent scheme to manipulate trading volumes and forced the employees to engage in money laundering.

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