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Coinbase is investigating insider trading with its Bitcoin Cash offering

Coinbase is investigating insider trading with its Bitcoin Cash offering
[Photo: Flickr user goodegg0843]

The U.S.-based cryptocurrency exchange is investigating whether some of its employees profited from its launch of bitcoin spin-off, Bitcoin Cash, reports BusinessInsider. The company halted trading of Bitcoin Cash just four hours after it began on Tuesday after the cryptocurrency reached above $8,000 per coin. The problem wasn’t the high price, rather Bitcoin Cash’s value started appreciating before the announcement from Coinbase that it would trade the currency, suggesting insiders may have acted on their advanced knowledge of the news. Announcing the investigation, Coinbase’s CEO Brian Armstrong wrote on Medium:

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.

MG