How Does a CEX Mitigate the Risk of Internal Fraud? ▴ Learn

How Does a CEX Mitigate the Risk of Internal Fraud?

A CEX mitigates internal fraud through robust internal controls, including strict segregation of duties, multi-signature wallet requirements for large fund movements, and comprehensive audit trails. Employee background checks and a culture of compliance are also essential to prevent employees from misappropriating customer funds or manipulating trading systems.

How Do Compliance Officers Audit the Effectiveness of a CEX’s Chinese Wall?

Can a Single Employee Bypass a Digital Chinese Wall If They Have Multiple Roles?

How Do CEXs Typically Enforce Rules against Internal Front-Running?

Can a CEX Be Held Liable for a Front-Running Incident If It Was Unaware of the Employee’s Actions?