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Coinbase accused of insider trading of bitcoin cash

Cryptocurrency exchange Coinbase was subjected to criminal prosecution for alleged insider trading during its launch of bitcoin cash.

06.Mar.18 12:17 AM
By Daria Zaytseva


Coinbase accused of insider trading of bitcoin cash

According to a court document dated last Thursday, the case has been brought by Jeffrey Berk, representing a group of investors who placed trading orders on Coinbase or its order book trading platform GDAX from December 19-21, 2017.

Based on the complaint, the case is aimed at launching Coinbase to sell bitcoin cash (BCH) in the same month, while the plaintiffs accuse the company of overturning insiders before the official launch. Thus, the group accuses the firm of negligence and is seeking losses, the amount of which will be determined at the trial.

As previously reported, Coinbase, based in San Francisco, first announced in August that it would support bitcoin cash. At that time, the exchange said that the new service would be broadcast live by January 1, after which investors would be able to withdraw bitcoin cash.

When Coinbase launched the BCH trading on December 20, BCH prices rose just before the announcement, and soon there were accusations on social networks suggested that employees of the company could overturn the others in advance. The company responded to the claims, announcing that it would investigate whether any employees could violate their insider trading rules.

However, the plaintiffs argue that the firm has never disclosed the full results of its investigation and that it violated the California’s Unfair Competition Law.

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