This practice is known as Wash Trading or Self-Dealing, depending on the context.
- Wash Trading: When the broker or large players engage in artificial buying and selling of an asset to manipulate its price and volume, creating the illusion of high liquidity or demand.
- Self-Dealing: When the broker trades against its own clients, using the assets stored on the platform to influence market prices.
Additionally, the lack of asset segregation (not keeping clients' funds separate from those of the broker) can lead to additional risks, such as fraud and insolvency. This type of practice raises concerns about **conflict of interest and transparency in the crypto asset market.
