Bitcoin Cash: Internal Investigation Clears Coinbase of Insider Trading Allegations
Coinbase has concluded that there was wrongdoing on its part concerning the listing of Bitcoin Cash on its platform in December 2017. This conclusion was based on an investigation into the circumstances that surrounded the listing of the popular Bitcoin fork on the platform. Meanwhile, the matter is still the subject of a class action lawsuit filed against the company by its customers.
Internal Investigation Reveals Zero Evidence of Insider Trading
In late December 2017, Coinbase surprised the cryptocurrency community by suddenly making Bitcoin Cash available for trading on its platform. Before the announcement, the price of the coin skyrocketed leading many to accuse Coinbase of insider trading. In response, the platform launched an internal investigation to ascertain if there was any wrongdoing on its part.
Apart from the investigation, Coinbase CEO, Brian Armstrong, also released a stern blog post where he warned company employees of the consequences of running afoul of the firm’s trading policies. He also said the company wouldn’t hesitate to fire and sue any employee found guilty of insider trading.
According to Fortune, the Coinbase internal investigation concluded its inquiry last week. Two prominent law firms spearheaded the investigation. Commenting on the conclusion of the inquiry, the company said:
We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated. We can report that the voluntary, independent internal investigation has come to a close, and we have determined to take no disciplinary action.
An inside source at the company also revealed that a member of the platform’s legal team has already intimated Coinbase staff on the result of the investigation.
The Coinbase – Bitcoin Cash Saga
While the result of the internal inquiry is good news for Coinbase, the matter is far from over. There is still a pending class action lawsuit against the company, filed by some of its customers. According to Lynda Grant, lead counsel for the plaintiffs in the suit, the case is still ongoing and is currently in the procedural stages.
Grant also believes that the Commodity Futures Trading Commission (CFTC) is investigation the Coinbase – Bitcoin Cash Saga. The CFTC is yet to issue any corroborating statement.
Do you think Coinbase is guilty of insider trading concerning the Bitcoin Cash Listing? Let us know your thoughts in the comment section below.