What happened
An internal ‘market volume function’ algorithm traded from an internal account, generating wash trades that made up over 90% of reported trading volume between July 2018 and December 2019.
Coinsquare also reported non-economic internal trades worth about 112,000 bitcoin from December 2014 to December 2019, and took a reprisal against an internal whistleblower.
Under the settlement, the CEO paid a $1 million penalty, the president $900,000, the chief compliance officer a $50,000 voluntary payment with a one-year prohibition, and the company and two executives $300,000 in costs.
Scale, from official records
- Wash trades over 90% of reported volume (July 2018 – December 2019); no client-loss figure stated (Coinsquare Ltd. (Re), 2020 ONSEC 19)
The Canadian angle
A Toronto crypto platform. The OSC settlement was approved on July 21, 2020 while a subsidiary was seeking registration. Coinsquare Capital Markets Limited is now on the CSA authorized list.
What broke
Fake volume and liquidity signals, misleading statements to clients, and failed compliance and whistleblower controls.
What a user could have checked
- Whether reported volumes could be independently verified.
- Regulatory history: search a platform on Are They Registered and the CSA lists.
Recovery
Not applicable: no client assets were alleged lost.
Sources
- Coinsquare Ltd. (Re), 2020 ONSEC 19, oral reasons approving settlement — Ontario Securities Commission (Capital Markets Tribunal), 2020-07-21
Supports: All facts and settlement terms · checked 2026-11-01