Gemini Trust Co., the cryptocurrency exchange founded by Cameron and Tyler Winklevoss, chose Eventus Systems Inc. to provide surveillance and anti-market manipulation tools for an asset class that is often rife with illegal trading.
Austin-based Eventus provides similar services for large U.S. crypto exchanges Coinbase and ErisX. While the rules around illegal practices like front-running and wash trades are well-established in traditional markets, crypto so far has been less-regulated. Manipulation is one reason the Securities and Exchange Commission has repeatedly blocked a Bitcoin ETF, and a 2019 study alleged that Bitcoin’s rise above $20,000 in 2017 could have been caused by a lone trader.
“The digital asset space is a constantly changing environment,” Noah Perlman, Gemini’s chief operating officer, said in a statement. “Eventus has a great track record.”
The Winklevoss twins created the Virtual Commodity Association in 2018 to develop industry standards, promote transparency and work with regulators including the U.S. Commodity Futures Trading Commission to prevent fraud and manipulation in markets for digital assets such as Bitcoin and Ether. Gemini hired Nasdaq Inc. to provide market surveillance in 2018.
“As digital assets grow in popularity, it’s more important than ever that marketplaces like Gemini establish comprehensive trade-surveillance programs and procedures to ensure they remain constantly vigilant,” Eventus Chief Executive Officer Travis Schwab said in the statement.
To read the full article, click here.