New Faces at Coinsquare
Coinsquare, the Canadian cryptocurrency exchange currently under the watchful eye of regulators, announced the addition of two new board members on November 25: Nicholas Thadaney, former President of the Toronto Stock Exchange, and Wendy Rudd, who serves on the board of the Canadian Regulatory Technology Association. Talk about an upgrade where governance meets crypto!
A Shifty Past
It’s been a bumpy ride for Coinsquare lately. The exchange found itself in hot water after allegations surfaced of wash trading—where they allegedly inflated trading volumes without any real exchanges taking place. The Ontario Securities Commission (OSC) didn’t take this lightly, leading to a significant overhaul in leadership mid-year.
The Leadership Shakeup
Following the fallout, CEO Cole Diamond, President Virgile Rostand, and Chief Compliance Officer Felix Mazer all resigned. In a shocking twist, the OSC banned these individuals from holding any management roles at Coinsquare for a period ranging from one to three years. Talk about a reality check!
Who’s in Charge Now?
With the dust settling, Coinsquare welcomed new leaders in August, appointing Stacey Hoisak as Chief Executive Officer, Lawrence Truong as Chief Compliance Officer, and Eric Richmond as Chief Operating Officer. This fresh trio is expected to steer the exchange back on course.
A Commitment to Compliance
In a bid to reassure stakeholders, Hoisak stated, “The measures we have taken are in strict adherence to regulatory requirements and demonstrate Coinsquare’s strengthened commitment to our clients, employees, shareholders, and the digital asset community.” Sounds promising, right? But can they deliver?
The Wash Trading Exposé
What’s the core of the problem? The OSC accused Coinsquare of conducting wash trades—essentially executing zero-fee market trades against their own orders to paint a misleading picture of trading activity. They later admitted to about 840,000 wash trades between July 2018 and December 2019, with a jaw-dropping aggregated value of 590,000 Bitcoin (BTC), which was roughly $11.1 billion at the time. No assets changed hands, but the appearance of trading was alive and well.
Looking Ahead
Coinsquare has applied to operate as a regulated digital asset marketplace in Canada, which could pave the way for a new chapter for the exchange. But as they say, actions speak louder than words. Will these new appointments lead to genuine change, or is it just another layer of shiny paint on a rusted-out car?
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