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Anomalies in OKEx trading time distributions

Distinct surges in time-of-trade graphs indicate potential scheduled trading bots activity to obfuscate privacy coin laundering. Wash trading can also be a good explanation for such trading patterns.

While many exchanges have recently started to delist privacy coins, OKEx’s Monero (XMR) and ZCash (ZEC) markets remain active with abnormal trading patterns. XMR’s time of trade distribution on OKEx noticeably falls out of the common flow of activity observed on Binance and Huobi.

Tether's Growing Role in Illegal Activities

Allowing Tether to thrive for years led to new resilience mechanisms. Today, Tether is already in use on five independent blockchains, often dominating their on-chain transactions, and, in some cases, causing network congestion. Current blockchain forensics and market surveillance tools are unable to provide acceptable levels of KYC/AML efficiency.

Tether has been the subject of multiple investigations over the past few years. Most fit in at least one of these categories:

SENSO Token - Fake Trading Activity on Top Exchanges

SENSO token demonstrates suspiciously high and stable trade volume on Bittrex, KuCoin, and Poloniex. Observed trading patterns are consistent with wash trading.

SENSO token demonstrates suspiciously high and stable trade volume on Bittrex, KuCoin, and Poloniex. Observed trading patterns are consistent with wash trading.

Anomalous trades on Gate.io

Recent order size distribution on Gate.io deviates from other markets and contradicts Benford's law.

Spot market trades on Gate.io show signs of falsified numbers. Below are the distributions of leading, second, and third digits for the size of executed trades as compared to Benford’s law expected distributions. Evidence based on Benford’s law has been used by ACFE to discern naturally occurring statistical deviations from fraud.

Abnormal Trading Volumes on FTX

Suspicious trading volume spikes with low volatility hint at potential wash trading activity on FTX exchange.

Our investigation team constantly monitors abnormal activity happening on multiple market venues. The bar chart below highlights the anomalous bitcoin volumes traded on FTX in periods of low volatility. Of note are the readily identifiable peaks of 1 min trading volume that don’t significantly affect the price itself (the difference between open and close price).

Scheduled trading activity dominates Huobi and OKEx

Huobi and OKEx are often at the top of trading volume charts. The actual executed trade numbers show, however, suspiciously close trading patterns that might indicate the dominance of a few bots that follow a preset schedule.

One of the market manipulation metrics we pay attention to is the time of the trade distribution. Both Huobi and OKEx show abnormal distributions for second-of-the-trade and minute-of-the-trade graphs.