How Does the Severity of the Penalty Differ between CEX and DEX Manipulation Cases?
The severity of the penalty is generally tied to the regulator's ability to identify and exercise jurisdiction over the perpetrator. CEX manipulation cases often result in more severe, enforceable penalties (large fines, jail time) because the entities and individuals are identifiable and fall clearly under regulatory authority.
DEX manipulation (MEV) is harder to penalize directly, as the actors are often pseudonymous, though regulators are exploring ways to target developers or interfaces that facilitate the manipulation.
Glossar
Cex Manipulation Cases
Exchange ⎊ Centralized exchange (CEX) manipulation cases fundamentally involve illicit trading strategies executed on platforms that control the order book and custody of assets.
Dex Manipulation
Manipulation ⎊ The deliberate distortion of decentralized exchange (DEX) market dynamics constitutes manipulation, a practice increasingly scrutinized within cryptocurrency derivatives and options trading.
Enforceable Penalties
Enforcement ⎊ Enforceable penalties represent the punitive measures that regulatory authorities can practically impose on individuals and entities for violations within the crypto derivatives and financial markets.
Crypto Market Manipulation Cases
Action ⎊ The deliberate manipulation of cryptocurrency markets, encompassing a spectrum of illicit activities designed to artificially inflate or deflate asset prices, constitutes a significant threat to market integrity and investor confidence.