Coinbase Investigation into Bitcoin Cash (BCH) Insider Trading Found Not Guilty
Bitcoin Cash was recently put under investigation for potential insider trading, the company behind the investigation was no other than the massive Coinbase. It’s not clear on exactly what type of fraudulent trading they were suspected of, but one thing is for certain – there were millions of Bitcoin Cash users around the world, potentially at risk.
As to why Coinbase felt the need to put them under the spotlight isn’t 100% known. The guesses are talks of employee trading is one guess, in either way it stemmed from the fork that occurred when Bitcoin Cash was branched from the father of them all Bitcoin. As of now, the investigation has been closed, stating that Bitcoin Cash in fact, did not participate in any type of insider trading. This includes all executives and employees of the company, who are surely grateful for the final verdict set by Coinbase.
Bitcoin Cash was different than other cryptocurrencies as it was unavailable for purchase at the time it was listed, which is different than that of other cryptocurrencies like Litecoin. Another guess by skeptics is that Coinbase’s own employees played a part in the potential insider trading.
Coinbase disputed that myth, claiming that the investigation has been closed for weeks and if any employee of theirs had been found guilty of fraud, they would be immediately fired with proper pending legal actions taking place. As for now, it looks like all Coinbase’s and Bitcoin Cash’s employees are off the hook from their viewpoint. That doesn’t mean other members of the cryptocurrency community are so convinced.
After all, the initial response to Bitcoin Cash by Coinbase was to ban it from all trading on the platform. When they suddenly changed their position, people had to ask ‘why?’
According to an anonymous tip given to certain online publications, one being Coinbase namely, the reason for the change of heart was simply because they found no evidence of corruption within the ranks of Bitcoin Cash.
The move is still suspect however, considering Coinbase went from banning the cryptocurrency to preparing it for trade in January, then unknowingly released it in December. Conveniently, the price of the token spiked just moments before it was listed on the popular exchange for trading. This is primarily what led to the suspicion around insider trading, showing someone obviously knew about the listing before it happened – not to mention the spike increase on the price per token. The entire launch created a caveat of attention from cryptocurrency investors across social media. Blog posts were even written by CEO of the company (Brian Armstrong) in response to the attack directed towards Bitcoin Cash and Coinbase.
The ruling that no foul play had been conducted came as quite a surprise to crypto-users everywhere. Investigations where held by two trusted law firms, meaning Coinbase wasn’t in charge of them or the verdict.
It doesn’t change the fact that Coinbase has basically been in constant legal battles against class-action lawsuits for some time by customers pursuing re-promotions for damages caused by the company’s lack of user protection. The case is still in its early stages, so there is no telling if it will go to trial or a settlement will be given. It’s not a good look for Coinbase, to be involved in a class-action lawsuit while getting shouted at for potential insider trading.
One last thing is the investigation into Coinbase may still be ongoing by other third parties and regulatory forces. There may or may not be certain commission trading groups that are currently investigating the company, but since no response to the question has been given, we must rightfully leave out any titles or committee labels.
Coinbase is known for causing price spiked with different tokens, it’s nothing new but something that is provoking users. It’s likely that if Coinbase doesn’t step up its game, more accusations are going to be placed on the world’s most popular exchange platform.
Did Bitcoin Cash and Coinbase participate in insider trading? What do you honestly think? Leave your verdict and reasons why in the comment section below.