Huobi Global one of the leading crypto exchanges around the world has come out today to deny allegations that it engages in wash trading. This follows a Bitwise Asset Management report that implied the exchange was inflating its trading volume.
The exchange has also taken steps to discourage such activity according to Livio Weng, the platform’s CEO. Speaking to a leading crypto website Weng noted that the exchange “is not involved in any wash trading,” and any such actions go against the platform’s “core values.”
The CEO added that the Bitwise report that suggested Huobi was engaging in wash trading caught them by surprise which forced the exchange to do a thorough check and review of their system. However, they did not find any evidence of systematic abuse.
“We did identify a few of our market makers conducting what we suspect may have been wash trading for the sake of performance and marketing purposes. We have already communicated with these market makers and they have discontinued the strategies in question.”
Weng added that the exchange is now in the process of updating its policies to ensure it avoids potential wash trading issues in the future.
The report was published in March where Bitwise noted that only ten crypto exchanges were reporting their exact trading volume. The platform’s included Binance, Bittrex, Bitstamp, Coinbase, Bitwise, itBit, Poloniex, Kraken, bitFlyer and Bitfinex.
Wash trading occurs when the participants collude to sell a crypto asset back and forth to each other at ever higher prices which creates the illusion of a rising market.
Currently, Bitwise is trying to convince the SEC to approve a bitcoin exchange traded fund (ETF).
On Friday Bitwise published another report where it noted that Huobi had begun to report different trade volumes just a few weeks after the first report.
“We also recognize that Huobi might have taken action to clean up wash trading on their platform within that time frame, but that view is challenged by the fact that Huobi’s reported bitcoin trade volume did not meaningfully drop during that time.”
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