Canada’s largest Bitcoin exchange changes leadership after scandal over fake trading volumes

The Canadian cryptocurrency exchange Coinsquare announced changes to its board of directors after a regulator accused it of fabricating trading volumes.

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Coinsquare is excited to announce new leadership as well as the filing of applications to operate a regulated digital asset marketplace in Canada for #bitcoin, #ethereum, #XRP and more. https://t.co/mPUhxkFB6p

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— Coinsquare (@Coinsquare) November 25, 2020

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Nicholas Tadani and Wendy Rudd joined the Coinsquare board, bringing experience in Canadian securities regulation, the operations of investment dealers, and regulated markets.

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“We have taken these measures in strict accordance with regulatory requirements and in order to demonstrate a strengthened commitment to clients, employees, shareholders and the digital assets community. We aim to create a client-focused, safe place where Canadians will be able to trade digital assets,” Coinsquare writes.

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Earlier in July, at the request of the Ontario Securities Commission (OSC), which accused Coinsquare of fabricating trading volumes, CEO Cole Diamond, founder Virgil Rostand and managing director Felix Meizer left their posts. All three were also fined substantial penalties.

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According to the regulator, from July 17, 2018 to December 4, 2019, 90% of Coinsquare’s volumes were artificially created using wash trading, a strategy in which one participant acts as both buyer and seller.

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In November, the Canada Revenue Agency (CRA) via a court requested Coinsquare to hand over data on all of its users dating back to 2013.

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