FT: Crypto.com hid its own trades on the exchange
Financial Times: Crypto.com hid its own trades on the exchange
The cryptocurrency exchange claims that all transactions were not for profit, but to maintain liquidity on the platform
Crypto.com exchange was hiding internal trades on its trading platform, the Financial Times (FT) reported, citing sources familiar with the matter. According to their information, employees of the crypto platform were instructed to keep special teams' trades secret.
The publication reported that the Singapore-based exchange tried to hide internal trading activity, with management asking employees "to say there are no internal operations like market-making."
FT sources told the exchange's teams were trading on Crypto.com and other venues to make money, "not to facilitate the operation of the exchange." Crypto.com denies engaging in any improper activity and says the transactions were conducted to maintain liquidity on the platform.
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"We have an internal market maker that operates on the Crypto.com exchange, and this internal market maker is treated the same way as third-party market makers, they equally help keep spreads small and make the market on our platform more efficient," a Crypto.com spokesperson told the publication.
Crypto platforms such as BitMEX and Binance also have internal trading desks that work to maintain liquidity, according to The Block. But this year, U.S. regulators began to take notice of similar activities by other crypto exchanges.
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