Huobi denies washtrading practices, stating they're against their core values

01 Jun, 2019
by Fifi Arisandi
Huobi denies washtrading practices, stating they're against their core values

Huobi denies washtrading practices, following the report from Bitwise Asset Management that claims the exchange as one of those exchanges with the most suspicious trading volume. 

Livio Weng made a statement related to the wash trading “accusation” to his exchange, Huobi.

Speaking through a spokesperson, the CEO denied any wash trading practices as he stated that such actions are against Huobi’s core values.

The statement is made following the release of Bitwise Asset Management’s report about crypto exchanges that listed Huobi as one of the exchanges that have the most suspicious trading volume.

Weng said that his exchange conducts a review to their system as well as a thorough check subsequently, and did not find any evidence of systematic abuse.

That said, he did identify such practices done by some parties as he said, “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.”

As a follow up action to the findings, Huobi is currently in the process of updating their policies to avoid potential wash trading issues moving forward, as reported by Coindesk.

To those unfamiliar, wash trading is an action to manipulate the market by performing repeated buys or and sells to create the illusion of an uprising market.

According to Bitwise’s report, Huobi had an “anomalous pattern” that indicated a “resurgence of large trade sizes”, which is consistent up until the report was published. Interestingly enough, such pattern was completely vanished within 3 weeks after the publication.

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