We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and nature; abnormal first-significant-digit distributions,...

We introduce systematic tests exploiting robust statistical and behavioral patterns in trading to detect fake transactions on 29 cryptocurrency exchanges. Regulated exchanges feature patterns consistently observed in financial markets and nature; abnormal first-significant-digit distributions,...

The online appendices provide supplementary results and discussion, the development and regulatory status of cryptocurrency exchanges, a theoretical model of wash trading, and a further explanation of Benford’s law as a forensic tool.Full paper available at: https://ssrn.com/abstract=3530220