Connect with us

News

The class action lawsuit against Coinbase was supplemented with details of insider trading Bitcoin Cash

Published

on

On Tuesday, November 20, a supplemented class action was filed with the federal district court of the Northern District of California against the largest US cryptocurrency company Coinbase, which contains data on the “false” statements of the latter when listing Bitcoin Cash in December 2017 and other details of probable insider trading, reported by CoinDesk .

The plaintiffs argue that the exchange intentionally created the conditions for Bitcoin Cash's pampas and allowed a limited number of traders to sell at the best price.

“As a result, individual responders and Coinbase allowed the company to earn substantial commissions on those trading operations, to directly benefit from the spread on the inflated price of Bitcoin Cash, and also to avoid the influx of sellers by closing trades a few minutes after they were opened. Only some insiders were allowed to sell at an inflated price, ”the lawsuit says.

Recall, against the background of listing on Coinbase, the BCH rate in just 48 hours took off by 130% – from $ 1,865 to $ 4,300. Bidding was suspended already four minutes after the start.

Then, a Bitcoin enthusiast and undertake Albert Renshaw published a remote correspondence on the forum / r / Coinbase the day before the BCH listing, in which an unknown user under the name mukiva2 warned traders about the upcoming event, citing a source in the company.

At the same time, the internal investigation of Coinbase found no evidence of insider trading, and at the end of October the Federal District Court of the Northern District of California rejected one of the lawsuits against the company [ of March 2 ] due to the absence of legal grounds for its consideration.

Subscribe to BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.

<< aside id = "unisender_subscribe_form-10" class = "widget unisender_form">

BlockchainJournal.news