An inquiry by leading United States-based cryptocurrency exchange, Coinbase, has found that no improper trading took place last December surrounding the launch of its Bitcoin Cash pairings.
Coinbase Inquiry Finds No Insider Trading on BCH Markets
A Coinbase spokesperson has confirmed that the investigations into potential insider trading conducted by “two well-known national law firms” have come to a close, asserting that no improper trading took place.
“We can report that the voluntary, independent internal investigation has come to a close, and we have determined to take no disciplinary action,” the spokesperson said. “We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated.”
According to an anonymous source, the findings of the inquiry were discussed with Coinbase employees during a company-wide meeting in recent days.
Suspicions Emerge Following BCH Price Spike
After initially scheduling the launch of BCH pairings by the 1st of January, 2018, Coinbase’s Bitcoin Cash markets abruptly went live during mid-December, 2017.
The altered date for the introduction of Coinbase’s Bitcoin Cash pairings aroused suspicions that employees of the exchange who were privy to the launch date may have been responsible for the significant BCH price rise during the hours preceding to the announcement of the Coinbase’s mid-December launch.
In a blog post published on the 20th of December, 2017, Coinbase co-founder and Chief Executive Officer, Brian Armstrong, revealed that the exchange would be launching a legal inquiry into the matter, stating: ”Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action.” The post also emphasized that “All Coinbase employees and contractors were explicitly prohibited from trading Bitcoin Cash and from disclosing our launch plans.”
A class-action lawsuit pertaining to improper BCH trading that was filed against Coinbase is still ongoing.
What is your response to the inquiry’s findings? Share your thoughts in the comments section below!
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Author: Samuel Haig