Coinbase Investigates Possible Insider Trading Before Bitcoin Cash Announcement

21 December, 2017, 00:39 | Author: Bridget Leonard
  • Coinbase Investigates Possible Insider Trading Before Bitcoin Cash Announcement

Coinbase, a provider of digital wallets and trading services for crypto-currencies, said on December 20 it was investigating possible insider trading by employees and contractors after the price of bitcoin cash surged hours before the company announced it was adding the digital currency to its platform.

Trading in bitcoin cash will be suspended until 1200 ET (1700 GMT) today, a Coinbase status page showed.In a blogpost, Coinbase said it suspended trading in Bitcoin Cash because of significant volatility. "Factors we considered include developer and community support, security, stability, market price and trading volume".

Users will be credited an amount of Bitcoin Cash equal to their Bitcoin balance.

With the issues related to the transaction time of the actual crypto-currency, Bitcoin Cash was introduced in the month of August, which differed slightly from Bitcoin itself.

News that Youbit, a South Korean exchange, halted trading and its operator Yapian, filed for bankruptcy on Tuesday after it said it was hacked, rocked the cryptocurrency boat. From a cursory glance, it looked like someone knew about the Coinbase move in advance, triggered a flurry of trading that led to a spike in price, and took advantage of this for a massive windfall.

"It appears the price of Bitcoin Cash on other exchanges increased in the hours before our announcement".

As of press time, BCH is trading at roughly $3,270 on GDAX, compared to $3,353 on Bitfinex and $4,251 on South Korea-based Bithumb.


The Coinbase launch was a huge boon for Bitcoin Cash investors, but it didn't come without its share of controversy.

"All Coinbase employees and contractors were explicitly prohibited from trading Bitcoin Cash and from disclosing our launch plans over a month ago". One, knowing that Coinbase is adding the support for BCH, could have bought BCH in huge quantity on other exchanges.

Something similar happened yesterday when Coinbase finally added Bitcoin Cash to the platform. Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter.

Trade of Bitcoin Cash was frozen just four minutes after it began on the firm's Global Digital Asset Exchange (Gdax) and existing orders were cancelled.

In a statement earlier today, CEO Brian Armstrong wrote that the company would investigate whether any employees had traded on the pre-public news.

Bitcoin Cash was the third biggest cryptocurrency with a total market capitalization of $59bn, according to Coinmarketcap.

Recommended:

  • Brexit transition to end by December 2020

    Brexit transition to end by December 2020

    She wants to negotiate a transition deal with Brussels by March to reassure businesses and then seal a long term trade deal by October.
    Harry Potter: Hogwarts Mystery is a new mobile RPG due next year

    Harry Potter: Hogwarts Mystery is a new mobile RPG due next year

    Interactive Entertainment's Portkey Games, a new label dedicated to creating gaming experiences set within the Harry Potter world. The company, known for its work on puzzle games like Cookie Jam and Panda Pop , has licensed the IP from Warner Bros.
    SpaceX to launch, land at Cape Canaveral

    SpaceX to launch, land at Cape Canaveral

    The fresh residents, led by Soyuz commander Anton Shkaplerov, will fly to the station inside the Russian Soyuz MS-07 spacecraft. Since the incident, SpaceX had moved its launches to Pad 39A, which is where the Apollo missions to the Moon had blasted off.
  • Snow will hit NYC for Friday evening commute, travel advisory issued

    Snow will hit NYC for Friday evening commute, travel advisory issued

    Light snow will develop this afternoon between 2 and 4 pm and continue through the evening commute. Be prepared for snow covered roads and limited visibilities, and use caution while driving.

    After 35-year ban, Saudi Arabia to reopen cinemas in 2018

    The industry is expected to contribute about Dollars 24 billion to the economy and create more than 30,000 permanent jobs. Yet, he voiced his concern over censorship, as "any kind of intimacy and love is considered taboo and a moral violation".
    Here comes the flood: Site C approved. Again

    Here comes the flood: Site C approved. Again

    In the lead up to Horgan's decision, the two nations said finishing the now $10.7-billion dam would prompt a $1-billion lawsuit. The commission's report made no recommendations to government about its decision, but its report did question B.C.
  • New Wreaths Across America group honors 2100 veterans' graves in North Huntingdon

    New Wreaths Across America group honors 2100 veterans' graves in North Huntingdon

    Over the summer they held a boot drive at area grocery stores. We had some kids come and help put the bows on the wreaths.
    Funding secured for $11.1bn United States  rail project

    Funding secured for $11.1bn United States rail project

    The two states would take out a 35-year, $1.75 billion loan, with NY paying it back using money from its budget. In the first decade of this century, however, construction was about to begin on new rail tunnels into NY .
    Google releases a trio of experimental camera apps

    Google releases a trio of experimental camera apps

    It clicks black and white photos each time you pose and the app also encourages you to change your pose when you stop moving. Last up is the iOS-only Scrubbies , which lets you scratch your video like a DJ's turntable to get the desired effect.
  • Facebook announces plan to stop diverting some ad revenue through Ireland

    Facebook announces plan to stop diverting some ad revenue through Ireland

    For Ireland, the value of Facebook's headquarters here is mainly the jobs created not the corporation tax it pays, Mr Coffey said. Ireland has now opened an account for Apple to deposit the money in, though both it and Apple have appeals against the decision.
    Rock and Roll Hall Of Fame 2018 Inductees Named

    Rock and Roll Hall Of Fame 2018 Inductees Named

    The nominees were voted on by a collection of over nine-hundred artists, historians, and other key people in the music industry. The list of nineteen acts nominated for induction in 2018 included a broad spectrum of styles and genres.

    Daring Chinese 'Rooftopper' Filmed His Own Death

    Wu's family said the 26-year-old had taken part in a rooftopping challenge that promised 100,000 yuan (US$15,000) in prize money. In his videos on Weibo , Yongning said he relied on martial arts training and careful planning when scaling skyscrapers.


Popular

10-year paper contract won't last for Lane Kiffin
The FAU Owls (10-3) are set to take on a big underdog in the University of Akron (7-6) Tuesday Night 12/19, 7 pm EST on ESPN. The team went undefeated in conference play and that has prompted the school to approach Kiffin about a new contract.

Palestinian girl filmed trying to provoke soldiers is arrested
Tamimi was arrested a day after a video of her slapping two Israeli occupation soldiers in a West Bank village went viral . Israeli security forces made the arrest overnight Monday.

Lady Gaga to begin Strip residency at Park Theater in 2018
Before you watch her perform in Las Vegas , watch Gaga talk about her grandest album yet, Born This Way . Brittany Spears, Celine Dion, Jennifer Lopez and Elton John has all had successful runs in Sin City.

Train derails in Washington, 6 killed, over 50 hospitalised
A section of the Amtrak train 501 derailed as it crossed a bridge over a major highway in Washington State. "There was an insane amount of fire trucks and ambulances heading towards us".

Upstate NY production company cancels Tavis Smiley's tour over harassment claims
Smiley is the latest prominent figure in the news media, politics and the entertainment industry to face misconduct allegations. This contradicts his Facebook post from last week , where he cited only one previous relationship with an employee.

Bengals head coaching rumors: 5 candidates to watch
Marvin Lewis will reportedly be leaving the Cincinnati Bengal after the 2017 season after 15 years as the team's head coach. COLUMN: Could Bengals go the way of post-Dusty Reds? The Bengals (5-8) are scheduled to visit the Vikings (10-3) at 1 p.m.

Google Duo rolled out to standard dial app
This application gives an accessible route to the Progressive Web App (PWA) rendition of Google Maps, Android Police reports . Earlier this month, the search giant launched Android Oreo Go, an Android version tailored for the low-priced smartphones.

Patriots star explains why he's thrilled they signed WR Kenny Britt
The Patriots hosted Britt for a free agent visit during the 2014 offseason but opted to sign wide receiver Brandon LaFell instead. NFL.com's Ian Rapoport is reporting that such an agreement is a two-year deal through the 2018-19 season.

Global arms sales increase after 5 years
Seven South Korean arms groups rank among the Stockholm International Peace Research Institute's top 100 global arms producers. Overall, global sales of arms and military services have increased 38 percent since SIPRI began analyzing the data in 2002.

5.9 magnitude quake rocks Iran
In the epicenter of the quake, which struck at about 12:43 local time, the tremor measured magnitude 7-8 points. Iranian state TV says a 6-magnitude quake has jolted a western region near the border with Iraq.