Ontario Securities Commission (OSC) has alleged Canada crypto exchange firm, Coinsquare of market manipulations, and misleading clients about its trading volumes.

The firm which before now has been accused of wash trading and a hack is said to have gone against Ontario security laws. Coinsquare founder, Virgile Rostand, CEO Cole Diamond and chief compliance officer Felix Mazer of the Canada exchange firm has been accused of these allegations.

OSC, in a statement, explained that the CEO Diamond instructed staff to generate fake trading volumes as Rostand designed and implemented the code to carry out the illegal activity. Mazer was pointed out because he was the compliance officer from May 2018 until June 2020 but did not stop the firm from carrying out the criminal activity.

Allegations against the Canada crypto exchange firm occurred between July 2018 and December 2019. The firm allegedly engaged in around 840,000 wash trades with an aggregate value of about 590,000 Bitcoins, the OSC said. Coinsquare was said to have inflated more than 90 percent of trade volumes it reported.

A hearing on accusations against the crypto firm would hold on Tuesday, July 21.

Coinsquare, Canada crypto exchange firm first allegation

The exchange firm faced allegations first last month when VICE reported its involvement in wash trading showcasing many leaked emails, Slack chats, and other files.

Reportedly, some of Coinsquare employees questioned the inflated volumes, the firm continued with its illegal practice and also took reprisal against an internal whistleblower and Diamond authorized, permitted or acquiesced in this conduct.

In the past, many other crypto exchange firms also have been accused of inflating trading volumes.

Coinsquare crypto exchange

The Canada crypto exchange firm was founded in 2014 and offered trading services with some top digital currencies, including Bitcoin, Litecoin, and Ether. At the end of 2019, the exchange had about 235,000 clients.

Based in Toronto, the firm aimed at creating a regulated open financial platform for the world by leveraging blockchain technology.