The Truth About Crypto Insider and Wash Trading

"To really understand market integrity, you need to be able to monitor for market abuse and other forms of illicit finance, on and off-chain."

This is a powerful statement from market manipulation, Chen Arad (Co-Founder & CXO, Solidus Labs), who speaks with  Ian Andrews (CMO, Chainalysis) about the heart of market surveillance and integrity in a wildly fluctuating digital asset market.

Chen discusses the need for market surveillance to ensure fair and transparent trading and highlights the challenges of monitoring market manipulation and the significance of on-chain and off-chain data.

Chen also highlights the prevalence of insider trading and wash trading in the crypto market and explores the future of the industry and the importance of building compliant and safe services.

He provides insights on the crypto market's need for robust risk and compliance systems and the growing regulatory recognition of its importance, while revealing alarming statistics revealed in Solidus Labs' Market Manipulation Reports. 

Minute-by-minute episode breakdown

2 | Chen Arad's background as a journalist and his path to working in crypto and launching Solidus Labs

7 | Understanding the concept of market surveillance and market integrity in crypto
12 | The approval of ETFs as a vindication for the necessity of market integrity in crypto 

16 | The need for cross-market surveillance and integrity

22 | Real-time monitoring in crypto markets and importance of on-chain and off-chain data for market surveillance

28 | Insider trading and wash trading are more widespread than believed 

35 | Unpacking the definition and mechanics of wash trading on decentralized liquidity pools

40 | Wash trading involving malicious smart contract scams and potential money laundering 

44 | The importance of building compliantly and working with regulators 

47 | Potential for cross-market surveillance and growth of on-chain market

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

• Website: Solidus Labs: Safeguarding Your Crypto Business
• Reports:  The Crypto Market Manipulation Report:  Pt. 1 Insider Trading | Pt. 2 Wash Trading
• Blog: Future of Crypto in the UAE: Insights from Solidus Labs at iFX EXPO Dubai
• Blog: Combining On-Chain And Off-Chain Analysis: A Primer
• Event: Chainalysis Links Conference NYC 2024 (Apr. 9-10, 2024) - Early Bird Pricing On Now!
• Blog: Chainalysis In Action: Israeli Authorities Disrupt Hezbollah and Iran Quds Force Terrorism Financing Crypto Infrastructure, Seize $1.7 Million in First
• Blog: OFAC Sanctions Russia-based Blockchain Companies, Including Netex24 and Bitpapa, for Facilitating Sanctions Evasion
• Blog: OFAC and OFSI Sanction Social Media News Outlet Gaza Now for Hamas Fundraising in Wake of October 7 Attacks
• YouTube: Chainalysis YouTube page
• Twitter: Chainalysis Twitter: Building trust in blockchain
• Tik Tok: Building trust in #blockchains among people, businesses, and governments.
• Telegram: Chainalysis on Telegram

Speakers on today’s episode

• Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) 
• Chen Arad (Co-Founder & CXO, Solidus Labs)

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