When Bitwise Asset Management declared in a March 2019 presentation to the United States Securities and Exchange Commission that 95% of the Bitcoin (BTC) trading volume being reported globally on cryptocurrency exchanges was “fake,” it jolted rating firms, exchanges and the larger crypto world. Data analytics firms recalibrated their exchange ranking metrics, and some assumed it was just a matter of time before wash trading was curtailed if not eliminated.
But wash trading was back in the news last week when the CEO, president and chief operating officer of Canadian crypto exchange Coinsquare were all forced to step down after Ontario securities regulators accused the company of inflating trading volume to the tune of $5.5 billion.