Bad Faith Conduct

Definition ∞ Bad faith conduct describes actions undertaken with dishonest intent, malice, or a deliberate disregard for contractual obligations or ethical standards. It involves a willful act of deception or an attempt to mislead another party for personal advantage. Such behavior undermines trust and fair dealing within any economic or transactional system. In digital asset contexts, this often relates to market manipulation, scamming, or intentional protocol exploitation.
Context ∞ Within cryptocurrency markets, identifying and addressing bad faith conduct is a persistent challenge due to pseudonymity and the global nature of transactions. Regulators and self-governing bodies are continually seeking methods to deter and penalize malicious actors engaging in pump-and-dump schemes, rug pulls, or oracle manipulation. The ongoing debate centers on balancing user privacy with the need for accountability and market integrity. Technological advancements in on-chain analytics aim to improve detection capabilities.