Coinbase Investigating Possible Insider Trading of Bitcoin Cash

DooKey

DooKey

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Coinbase CEO, Brian Armstrong, released a blog entry today announcing his company was going to investigate possible insider trading of Bitcoin Cash prior to public trading of BC on Coinbase yesterday. Apparently, a run up in price of BC has raised suspicions that someone was taking advantage of non-public information. He plans to terminate any employee found violating company policy and take appropriate legal action.

Our launch of Bitcoin Cash today is no exception to this. All Coinbase employees and contractors were explicitly prohibited from trading Bitcoin Cash and from disclosing our launch plans over a month ago. This was communicated multiple times via multiple channels to employees. For instance, I made sure it was emphasized at our Friday Q&A sessions, and in emails sent to all employees.
 
will have to check out how much BC I have... sold 2 BTC last week... merry christmas to myself:)
 
Comedy. This is like Trump announcing he's investigating "Rusher Collusion" with the dumb grin.

Brad Armstrong has lost any small shred of credibility he still had. Retail investors got duped, insider whales win - same old story.
 
RogueTadhg said:
There are no laws regulating insider trading? Look up 10b 5.
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In regulated financial markets like stocks/forex yes, there are rules about insider trading. Crypto is a completely unregulated market, so 10b whatever doesn't apply.
 
Biznatch said:
In regulated financial markets like stocks/forex yes, there are rules about insider trading. Crypto is a completely unregulated market, so 10b whatever doesn't apply.
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Yup its not regulated market and the laws do not apply. And it shouldn't be regulated as this is part of the appeal of Bitcoin and its cowboy/free environment. If it does become regulared it will turn out just like every other physical currency, just not home country as its base.
 
I think the SEC is slowly moving to disagree that their rules don't apply; the writing is (literally) on the wall that they're warning people to consider if these are securities because they will be held liable if they are...just the first step that just because it isn't explicit today, doesn't mean you won't get charged for insider trading tomorrow when it is ruled a security.

https://www.sec.gov/news/public-statement/statement-clayton-2017-12-11
 
Montu said:
He plans to terminate any employee found violating company policy and take appropriate legal action.
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legal action against what, virtual coins that don't actually exist and that are not regulated and that allow money laundering and that no one pays taxes on their gains and he wants to sue the employee(s)?

Clearly, there is no honor amongst thieves ...
 
TwistedAegis said:
I think the SEC is slowly moving to disagree that their rules don't apply; the writing is (literally) on the wall that they're warning people to consider if these are securities because they will be held liable if they are...just the first step that just because it isn't explicit today, doesn't mean you won't get charged for insider trading tomorrow when it is ruled a security.

https://www.sec.gov/news/public-statement/statement-clayton-2017-12-11
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I've seen they're looking at it, but until legislation is passed, what can they litigate against? Honest question, I don't know how this law would be applied retro-actively.
 

Saw this yesterday. It was a pretty funny thread. Funny to see people upset about CNBC having a "fake coin" guy on because apparently they think it's wrong to promote fake coins over the other fake coins they personally prefer.
 
HockeyJon said:
I've seen they're looking at it, but until legislation is passed, what can they litigate against? Honest question, I don't know how this law would be applied retro-actively.
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Tax fraud as most cashing out coins probably aren't withholding taxes. At least that's the likely reason the IRS was collecting records.

B00nie said:
One of the founders of bitcoin also recently said he doesn't see bitcoin ever becoming a viable currency and he dumps his btc. Rats are leaving the ship...
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Blockchain has a future, it's just that an official go-to currency hasn't been decided. As it stands PonziCoins are an unregulated commodity ripe for gaming.
 
HockeyJon said:
I've seen they're looking at it, but until legislation is passed, what can they litigate against? Honest question, I don't know how this law would be applied retro-actively.
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A regulatory ruling doesn't require legislative action. See the FinCEN ruling on virtual currency (which does squarely place crypto into a regulated place).

So a regulatory ruling by the SEC that crypto is a security, would allow them in this case to go after someone for insider trading; it would be interesting to see what the court said, but I see the SEC pointing to these prior communications putting the burden on the individuals transacting to figure out whether or not it's a security, and that it may be a security so act accordingly.
 
B00nie said:
One of the founders of bitcoin also recently said he doesn't see bitcoin ever becoming a viable currency and he dumps his btc. Rats are leaving the ship...
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There are no "founders" of Bitcoin. What you're referring to is the second link in the post you replied to.
 
LMT MFA said:
There are no "founders" of Bitcoin. What you're referring to is the second link in the post you replied to.
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Yeah, whatever. What he basically said is the same thing I've been saying. Bitcoin cannot be used as real currency so it's value is based on a speculative bubble. Once people understand that it's worthless the bubble pops like a balloon when people start selling in panic and nobody buys.
 
And for anyone wondering Bitcoin gold is a complete scam as well. I still like ether though
 
TwistedAegis said:
A regulatory ruling doesn't require legislative action. See the FinCEN ruling on virtual currency (which does squarely place crypto into a regulated place).

So a regulatory ruling by the SEC that crypto is a security, would allow them in this case to go after someone for insider trading; it would be interesting to see what the court said, but I see the SEC pointing to these prior communications putting the burden on the individuals transacting to figure out whether or not it's a security, and that it may be a security so act accordingly.
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Thanks for the heads up on the ruling! So I wonder if they'll be able to apply a retroactive "insider trading" charge to these guys. It should be nothing if not interesting to see how this unfolds.
 
I bought like 4 BCash once it got put on Coinbase. The people behind it are terrible but I was in it for the money. I was disappointed it didn't move up. I will hold on to it till it makes a rebound and then spend it on something else.
 
B00nie said:
Yeah, whatever. What he basically said is the same thing I've been saying. Bitcoin cannot be used as real currency so it's value is based on a speculative bubble. Once people understand that it's worthless the bubble pops like a balloon when people start selling in panic and nobody buys.
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The standard cry of someone realizing they're wrong and not taking the hit; "Yeah whatever". Aside from that point, for he time being you're probably right, but saying "you've been saying that" is like saying that you've been saying that humans need oxygen to live, there's obviously a lot of manipulation going on in cryptocoins, people buy and sell anyway, hoping they're the ones who make out big. It's amusing to watch, everyone's always crying that they want a correction to buy in when the price gets too high, then crying again when the correction actually happens. This cycle is the nth time this has happened this year alone. Wonder if upcoming Lightning or an alternative will change up that "usage as a real currency" bit.
 
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