Bitcoin exchange Coinbase to pay $ 6.5 million in fine for falsifying trading activity data

Coinbase has settled claims from the CFTC. The largest American crypto exchange will pay a $ 6.5 million fine for falsifying data on trading activity. This was reported on the website of the department .

“Between January 2015 and September 2018, Coinbase irresponsibly provided false, misleading and inaccurate reports on transactions in digital assets, including bitcoin, on the electronic trading platform GDAX, which it operated,” the regulator said.

Coinbase used the Hedger and Replicator programs, which generated orders that were matched against each other from time to time. This led to inflated trading volumes in certain trading pairs, misleading users.

The regulator also caught Coinbase in wash trading . According to the CFTC, for six weeks – from August to September 2016 – a former exchange employee systematically placed buy and sell orders in the LTC / BTC pair.

“This created a false impression of liquidity and trading interest in Litecoin,” the ministry said.

According to representatives of the CFTC, the share of fake activity generated by an employee sometimes reached 99% of the daily turnover of LTC / BTC.

As a reminder, Coinbase will list 114.9 million shares on the Nasdaq exchange as part of a direct listing.

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