Coinbase Employees suspected of Engaging in Insider Trading, Exchange starts Investigation
Cryptocurrency exchange Coinbase has surely managed to get a lot of interest from investors, as the company recently revealed that it started an investigation on concerns of insider trading.
Coinbase is the biggest cryptocurrency exchange in the US. The CEO of the company officially revealed that it started an investigation into what the company called unusual trading activity before the distribution of Bitcoin Cash. The company experienced some issues this week, which led to a trading halt.
Coinbase halted Bitcoin Cash trading
So, Coinbase decided to halt trading after Bitcoin Cash cryptocurrency increased its price to around $8,000, which was actually twice the price that the digital currency had at other exchanges. Thus, Coinbase decided to start its own investigation and if insider trading will be found, the company will take legal action against any employee involved.
Brian Armstrong, the CEO of Coinbase, talked about the company's decision is a recent blog post. He said that:
“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.”
Well, not only Coinbase believed that something was wrong related to Bitcoin Cash trading. In fact, the company was accused itself by several analysts and media reports of potentially facilitating insider trading. Coinbase has definitely had its share of difficult moments this year, including different moments when the company's platform stopped working.
The whole case involving Coinbase once again raises some concerns on the volatility of the cryptocurrency market, which has dealt with a lot of sudden and unexpected changes this year. While the price of Bitcoin Cash is currently $2,711, it has actually decreased by around $1,000, as on Wednesday it was available at $3,800. Bitcoin's value has also decreased.
