Insider Trading

[RapTarX]

Recently we have seen that US senators was accused of insider trading, sold million worth of stock right before the crash happened in the economy due to the Corona virus.
Is this kind of insider trading happening in crypto exchanges as well? If so, any information which exchange did this, with authentic link? Well, it may be a common thing but I just want to have some idea. Hence, looking for some previous case if existed. Of course, with bitcoin only.

Please let me know if this thread is not in the correct board.

[LeGaulois]

Yes, there is a story with Coinbase when they decided to add bitcoin cash 2 years ago. I don't remember the story correctly but that ended with a class action.

The company's employees were able to notify others in advance. The customers received their BCH at inflated prices that were well above the market value at the time.
The same accusation has been made when they added XRP

edit
https://www.zdnet.com/article/coinbase-bitcoin-cash-insider-trading-inquiry-reaches-an-end/
https://www.financemagnates.com/cryptocurrency/exchange/coinbase-faces-new-insider-trading-lawsuit/

[Bitcoin_Arena]

Recently we have seen that US senators was accused of insider trading, sold million worth of stock right before the crash happened in the economy due to the Corona virus.
Is this kind of insider trading happening in crypto exchanges as well?

It's very possible mate. First of a;ll most of them are not regulated so they can get away with it. Secondly the total volume of crypto is not that big so it's so easy to manipulate as compared to stocks.

[exstasie]

Recently we have seen that US senators was accused of insider trading, sold million worth of stock right before the crash happened in the economy due to the Corona virus.

It doesn't look like insider trading. That's just a reporter's spin. Buying or selling stock on bad news or expectations isn't illegal.

To be an "insider" you need to own > 10% of a class of company stock. I think it also requires material information about the company. I don't think bad news about the corona virus qualifies.

Is this kind of insider trading happening in crypto exchanges as well?

I'm sure. Crypto exchanges who don't deal in securities are completely in the clear since they aren't subject to SEC reporting, and insider trading laws don't apply to non-securities.

The Coinbase/BCH fiasco comes to mind. People cried about insider trading but it doesn't apply at all.

[RapTarX]

It doesn't look like insider trading. That's just a reporter's spin. Buying or selling stock on bad news or expectations isn't illegal.

It is indeed. North Carolina Republican Richard Burr, chairman of the Senate Intelligence Committee, has sold around $1m worth of stocks while he was receiving all the information about corona virus and keep insistant in public that Govt was able to handle this situation, then why did he sell before 1 week of the market crash? They used the information and sold before the crash.

To be an "insider" you need to own > 10% of a class of company stock.

It was not known to me. In that case, it might not be.

So, crypto are not subjective to be classified as insider trading? I got to learn lots of laws.