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Crypto’s Open Secret: Multibillion-Dollar Volume Is Suspect (1)

Sept. 28, 2018, 6:32 PM

Four months ago, BitForex was just one of many obscure exchanges offering users the ability to trade cryptocurrencies like Bitcoin.

Today, the Singapore-based platform is regularly reporting daily transactions that exceed $5 billion — nearly matching turnover on London’s 217-year-old stock exchange.

How did BitForex — and other startups like it -- expand so quickly despite tumbling digital-asset prices and slowing activity on more established venues?

Many market participants say they suspect these fast-growing exchanges are either offering incentives that encourage users to inflate volumes, or not doing enough to stop abuse on their platforms. One red flag at BitForex: ...