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Bitcoin Cash: Internal Investigation Clears Coinbase of Insider Trading Allegations

Coinbase has concluded that there was wrongdoing on its part concerning the listing of Bitcoin Cash on its platform in December 2017. This conclusion was based on an investigation into the circumstances that surrounded the listing of the popular Bitcoin fork on the platform. Meanwhile, the matter is still the subject of a class action lawsuit filed against the company by its customers.

Internal Investigation Reveals Zero Evidence of Insider Trading

In late December 2017, Coinbase surprised the cryptocurrency community by suddenly making Bitcoin Cash available for trading on its platform. Before the announcement, the price of the coin skyrocketed leading many to accuse Coinbase of insider trading. In response, the platform launched an internal investigation to ascertain if there was any wrongdoing on its part.

Apart from the investigation, Coinbase CEO, Brian Armstrong, also released a stern blog post where he warned company employees of the consequences of running afoul of the firm’s trading policies. He also said the company wouldn’t hesitate to fire and sue any employee found guilty of insider trading.

Courtesy: Entrepreneur.wiki

According to Fortune, the Coinbase internal investigation concluded its inquiry last week. Two prominent law firms spearheaded the investigation. Commenting on the conclusion of the inquiry, the company said:

We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated. We can report that the voluntary, independent internal investigation has come to a close, and we have determined to take no disciplinary action.

An inside source at the company also revealed that a member of the platform’s legal team has already intimated Coinbase staff on the result of the investigation.

The Coinbase – Bitcoin Cash Saga

While the result of the internal inquiry is good news for Coinbase, the matter is far from over. There is still a pending class action lawsuit against the company, filed by some of its customers. According to Lynda Grant, lead counsel for the plaintiffs in the suit, the case is still ongoing and is currently in the procedural stages.

Grant also believes that the Commodity Futures Trading Commission (CFTC) is investigation the Coinbase – Bitcoin Cash Saga. The CFTC is yet to issue any corroborating statement.

Do you think Coinbase is guilty of insider trading concerning the Bitcoin Cash Listing? Let us know your thoughts in the comment section below.

Image courtesy of Ethereum World News archives.

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Litecoin (LTC), Two Other To Be Listed On Gemini

The Gemini exchange, a creation of Tyler and Cameron Winklevoss, has stated that it is supporting Litecoin (LTC), Zcash (ZEC), and Bitcoin Cash (BCH). The development is an aftermath of the approval given by the New York Department of Financial Services (NYDFS).

Gemini, which have a large user base in 48 U.S states, Washington D.C., Puerto Rico, Canada, Hong Kong, Singapore, South Korea and the United Kingdom will first begin trading Zcash starting from May 22.

In a letter sent to Forbes Magazine, which is marked “confidential”, Cameron Winklevoss, who is the president, stated that the new listing was an outcome of working closely with the NYDFS.

However, Gemini is going to list Zcash first, making it the first licenses Zcash exchange in the world.

“Our approval makes Gemini the first licensed Zcash exchange in the world. It also makes the NYSDFS the first regulatory agency in the world to supervise Zcash,” Cameron indicated.

He explained in the letter that part of the appeal of Zcash is a privacy-protecting feature that allows counterparties to engage in trade without knowing anything about each other, Forbes stated.

“Called zk-snarks, the technology that can be added to any number of blockchains provides the same certainty of the bitcoin blockchain but doesn’t require that individuals using it know one another’s public addresses. The ‘zk’ stands for ‘zero-knowledge’.”

“We are working to support withdrawals to shielded addresses in the future,” Winklevoss wrote.

While Gemini is allowed to trade and keep Zcash, NYDFS told Forbes that Gemini will be allowed to trade Bitcoin Cash and Litecoin.

Speaking on the latest development in a separate statement, Gemini maintained that the fact that Zcash is a hard fork of the Bitcoin source code gives it an opportunity to be among the “Nakamoto Family Tree” of virtual commodities.

Meanwhile, there seems to be euphoria among the cryptocurrency lovers owing to the massive development that Gemini will bring to the to-be listed cryptocurrencies.

While there has been no changes in the price of the coins to be added to Gemini, expectation is high among cryptocurrency lover that it will birth something great for the crypto space.