We show that a type of market manipulation popularized in cryptocurrency markets is now also found in stock markets, an effect we term “crime contagion”. Manipulators gather traders in pseudo-anonymous online forums (e.g., Telegram) where they co-ordinate pump-and-dump attacks on stocks,...

Cryptocurrencies are among the largest unregulated markets in the world. We find that approximately one-quarter of bitcoin users are involved in illegal activity. We estimate that around $76 billion of illegal activity per year involves bitcoin (46% of bitcoin transactions), which is close to...

We show that cryptocurrency markets are plagued by pump-and-dump manipulation, with at least 355 cases in seven months. Unlike stock market manipulators, cryptocurrency manipulators openly declare their intentions to pump specific coins, rather than trying to deceive investors. Puzzlingly,...

How pervasive is the use of cryptocurrencies to evade capital controls? We develop a new method that exploits blockchain data to identify cross-border flows that circumvent controls via cryptocurrencies. Applying the method to China, we find that capital flight volume is over one-quarter of...

We find evidence of systematic insider trading in cryptocurrency markets, where individuals use private information to buy coins prior to exchange listing announcements. Our analysis shows significant price run-ups before official listing announcements, similar to prosecuted cases of insider...

We show that ironically, despite the use of advanced cryptography, digital assets such as cryptocurrencies are highly susceptible to theft. Analyzing every known hack and theft from centralized cryptocurrency exchanges, we show that over $5 billion has been stolen from cryptocurrency exchanges...