Novel loss causation methodologies for alternative digital securities
Brattle has been engaged in several blockchain and cryptocurrency matters, including to assess loss causation and alleged market manipulation. Brattle analyzed central limit order books, market depth, “off-chain” trade data, order execution, trading strategies, transaction histories, and other trading behavior patterns. Brattle successfully developed and used an instrumental variables regression model to examine causation by controlling for market and macroeconomic factors that impacted both trading in cryptocurrencies and the alleged manipulative activity. Our innovative approach showed that after controlling for appropriate market factors, the alleged manipulative activity had no statistically significant impact on prices.