Bitcoin Cash Freezes Trading Due To Possible Insider Trading
It appears that we may have a reason for Coinbase temporarily pulling the plug on Bitcoin Cash trading. From the looks of it, there may have been a bit of insider trading going on. Here’s the BBC with a quick update:
Coinbase fears its own workers may have exploited its move into Bitcoin Cash – a spin-off of the original Bitcoin.
Coinbase began letting its users buy, sell, send and receive Bitcoin Cash on Tuesday in a surprise decision but has temporarily suspended trade.
The company’s chief executive intervened after several market watchers posted allegations of illegal activity on social media sites.
“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.”
Trade of Bitcoin Cash was frozen just four minutes after it began on the firm’s Global Digital Asset Exchange (Gdax) and existing orders were cancelled.
If this is true, then it just shows utter stupidity on the part of those employees as insider trading is always frowned upon and subsequently called out. Greed can get the best of us at time but, tell me, would you have tipped off people you knew even if it means jail time if you are caught? Not sure if those laws apply here but I’m sure Martha Stewart thought the same…