A Coinbase investigation found no evidence to support the allegations into its alleged insider trading before it listed Bitcoin Cash. The exchange stated that no wrongdoing was detected during the in-house investigation carried out by the two law firms it hired to verify the accusations raised. The exchange said it won’t take any further action now since the allegations have been cleared.
Trouble started brewing when the Bitcoin Cash prices suddenly spiked in an unprecedented manner. This spike was driven primarily by a surge in demand from South Korean buyers on December 20, 2017.
On the same day, in a surprise announcement, Coinbase decided to list Bitcoin Cash on its platform. It had, however, earlier stated that it won’t be supporting the cryptocurrency till January 2018. Investors, who purchased BCH before this announcement, saw their assets soar to more than double their price in just a few minutes. It, therefore, did not take long for the industry enthusiasts to begin doubting that Coinbase was aware of the inexplicable BCH spike prior to making the announcement.
Coinbase Investigation: Not Quite Out Of The Woods Yet
According to the CCN report, Coinbase crypto exchange immediately announced the launch of an internal investigation. It promised to get to the root of the matter. The exchange hired two well known national law firms to verify if any of its employees participated in such practices.
After months of investigation carried out by the law firms, this news of all-clear comes as a respite and boost to Coinbase. The crypto exchange Coinbase had to suffer a great deal of reputational damage as a result of this investigation. The company mentioned that the probe cleared its employees of all insider trading allegations. The law firms recommended no further action os.
Unfortunately, Coinbase isn’t quite out of the woods yet. Arizona resident, Jeffrey Berk filed a class action lawsuit in March 2018, alleging professional negligence on the part of the company. The suit seeks a payout of around $5 million to Jeffrey Berk and similar investors like him.
The post Coinbase Not Taking Further Action As No Wrongdoings Found During Investigations appeared first on OWLT Market.
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