Polo To Face Class Action Suit

[lowbander80]

Yes, your probably right half were virtually dead but there were a few good possibilities.The problem arises where Polo used their knowledge to sell their wallets or someone did with the knowledge they were being delisted.That can be construed as insider trading or fraud

[TrueCryptonaire]

The fact that there are sells before delisting may not be a proof it is Poloniex that sold. It might as well be some large trader exiting their position. You need more solid proof that it is Poloniex that sold before announcing delisting. And, if a project/coin is decent the announcement of delisting it from Poloniex should not affect on the price. Delisting from one of the exchanges is not that big deal in my opinion.... By the way, how do you know it is not Poloniex that caused the dump? A lot of selling was taking place upon the announcement.

[lowbander80]

All 17 altcoins had massive dump before the announcement just check the graphs. I was never a believer in coincidences.I hold no altcoins apart from mining fees from our pool and I just bought some EXCL as I want to try a master node,so have no skin in the game just reporting the facts  

[CoinHoarder]

You need more solid proof that it is Poloniex that sold before announcing delisting.

No, that is not neccessarily how being found guilty of insider trading works.

If insider trading regulations applied to crypto, which I don't think they do since they are not regulated by the SEC...

Sure, if you have enough evidence that they acted on insider information by selling the cryptos themselves before the delisting would probably equate to a settlement in the class action.

But, it does not have to be Polo that actually did the selling of the cryptos. Disseminating the insider information to a third party, and the third party acting on the information is also illegal. Especially when the tipper receives some sort of economic benefit for tipping off the third party.

So, even if you didn't have proof that Polo acted on the information, you could probably reach a settlement in the suit if you had reasonable evidence that they tipped off a third party about the delisting in advance of it, and then that third party acted upon that information.

If that were the case, then both the insiders (tipper) and the third party(s) (tipees) would be guilty of insider trading.

[lowbander80]

Martin Repetto, CEO of Voxelus and Voxels coins (VOX) suspects insider trading around Poloniex.

“Honestly they sent no warning whatsoever, there is no problem with The voxel nor Voxelus, in fact, we are better than ever. I don’t know why they choose to delist us, they haven’t contacted us previously, but if you care to investigate, take a look at the graphics of ALL the coins announced to be delisted, they all follow a trend like if “someone” knew they were going to get delisted, hence price dropping like crazy. They all look alike.”
“We don’t have proof but everyone is saying thru the grapevine that there was inside knowledge. This can turn into a shit storm, we want to know why we got delisted, and address any issues to be listed again, also we want to know about the pattern all these coins followed EXACTLY 1 day before the announcement.”

[glerant]

I think that the lesson to be learned, here, is do not hold, in meaningful quantities, crypto that is listed on only one exchange (No matter how big and what volume) - unless that crypto is, itself, capable of exchange on the blockchain - e.g. Waves, NXT etc.

[aioc]

Polo is to face class action suit for insider trading before announcement of delisting 17 altcoins,evidence being gathered now according to a coin developer.

I'm surprised all the other exchanges like ccex are delisting inactive coins but they are not being sued so how come only Poloniex being sued for de listing,exchanges has valid reason to delist because their database cannot keep up

since polo have a lots of traders and more and more people around him are losing money because of those supported project, better to wait for more news update regarding to this concerned as what you've mention also cryptopia delist some coins and no one react about it.

You have a point,people trust poloniex compare to other exchange and coins that are on their database are top coins in the market,polo is known as the best destination for the best coins in the market,they should explain this to all their traders and members.

[monsanto]

Isn't half the point of having a crypto exchange so you can insider trade on it? I'd be shocked if this isn't going on with every unregulated exchange.  IIRC various exchange owners have even admitted to trading on their own exchange before realizing it might not be something they should be talking about openly.  Of course if they do that why wouldn't they use insider info. Hell, that's probably how they pay the Polo mods 

[lowbander80]

We are a US-based cryptocurrency exchange offering maximum security and advanced trading features.So if there US-based they must comply with  FinCen’s requirements so they have to record all transactions that take place on the exchange.If a class action starts FINCEN will become involved

[bbc.reporter]

And how did all 17  know before the Polo announcement.Please post constructive comments

Maybe the developers of the future delisted cryptocoins are informed a few days before they are announced to be delisted. It would be unfair not to. But of course most of those developers are really scammers. Sometimes you question why they were listed if they had no future.

[lowbander80]

Martin Repetto, CEO of Voxelus and Voxels coins (VOX) suspects insider trading around Poloniex.

“Honestly they sent no warning whatsoever, there is no problem with The voxel nor Voxelus, in fact, we are better than ever. I don’t know why they choose to delist us, they haven’t contacted us previously, but if you care to investigate, take a look at the graphics of ALL the coins announced to be delisted, they all follow a trend like if “someone” knew they were going to get delisted, hence price dropping like crazy. They all look alike.”
“We don’t have proof but everyone is saying thru the grapevine that there was inside knowledge. This can turn into a shit storm, we want to know why we got delisted, and address any issues to be listed again, also we want to know about the pattern all these coins followed EXACTLY 1 day before the announcement.”

Does nobody read before they answer and I have quotes from other DEVs who say the same that they were not informed beforehand, again that would be insider trading if they had

[poochpocket]

Cryptocurrency experts always projected that delisting from a major cryptocurrency exchange, such as Poloniex, would have a negative effect on each of the altcoins. Listing and then delisting altcoins will also manipulate markets. But it seems that someone has already earned some money using this situation.

Price charts of the altcoins that were named to be delisted from Poloniex exchange (Boolberry, Bitstar, Coin 2.1, CureCoin, Horizon, I/O Coin, Myriad, NobleCoin, NuShares, Qibuck, Qora, Quatloo, Rubycoin, ShadowCash, SuperNET, Voxels, Magi), show that there were massive selloffs of these coins just before the announcement from Poloniex.No coin devs or were warned before the announcement

Again. you're cherry picking data. There is no correlation between the pumps and delist unless you conveniently ignore: APM, DGB, EMC2, FTC, GAME, PINK, POT, XEM... and others. Look at the charts. There is no correlation between the pump and the delist when you factor in ALL markets.

[Hypocritus]

The OP and supporters of this thread do appear to be correct.

https://bitcointalk.org/index.php?topic=1896365.0

[lowbander80]

no one is talking about pumps were talking about massive sell-offs before the announcement on all 17 coins but yes there were suspicious pumps

[lowbander80]

But as I said the exchange has to follow FinCEN rules so all transactions are recorded 

[Hypocritus]

Cryptocurrency experts always projected that delisting from a major cryptocurrency exchange, such as Poloniex, would have a negative effect on each of the altcoins. Listing and then delisting altcoins will also manipulate markets. But it seems that someone has already earned some money using this situation.

Price charts of the altcoins that were named to be delisted from Poloniex exchange (Boolberry, Bitstar, Coin 2.1, CureCoin, Horizon, I/O Coin, Myriad, NobleCoin, NuShares, Qibuck, Qora, Quatloo, Rubycoin, ShadowCash, SuperNET, Voxels, Magi), show that there were massive selloffs of these coins just before the announcement from Poloniex.No coin devs or were warned before the announcement

Again. you're cherry picking data. There is no correlation between the pumps and delist unless you conveniently ignore: APM, DGB, EMC2, FTC, GAME, PINK, POT, XEM... and others. Look at the charts. There is no correlation between the pump and the delist when you factor in ALL markets.

Yes, well, if you had insider information, you would have to be very naive "not" to try to hide the illegitimate pumping and dumping with apparently legitimate pump.

Pump literally costs next to nothing, especially if you actually accomplish your goal.

[lowbander80]

The shit will hit the fan shortly and it will really hit it hard

[Hypocritus]

Having "insider information" does not mean that there is no ambiguity to the information. People privy to the information could have been informed of "The List" of possible delist coins, but when the "tish" hit the fan, only 17 of them ended up being delisted. This seems to explain the frantic activity with some of the other coins. In other words, to me, it does not look well for Poloniex.

[not.you]

But as I said the exchange has to follow FinCEN rules so all transactions are recorded 

I'm not taking a position on this either way, I have lots of money on polo and I suspect them of shenanigans from time to time.  I don't know whether or not you follow politics but I'm pretty certain that regulators in general, and financial regulators in particular are going to be taking the next four years off.

I know fincen and the boogieman of "terrorist" will still be an issue, but nobody is accusing polo of helping terrorists launder money, so I just don't see any serious pressure on them to follow any legal requirements these days.

[dissident]

I looked at the charts of these coins and compared them to the charts of other noname alt coins not being delisted and I don't see any huge differences aside from the plunge which came after the announcement, not before.  A lot of altcoins had volume spikes and raises in price on April 16th, including coins not listed on Poloniex and coins that are on Poloniex but not being delisted. The announcement came at 708PM April 18th.

I'm not convinced they could make that much money trading a bunch of illiquid, low volume, low market cap altcoins compared to what they make in exchange fees from doing legit business. I can see how someone might think they did something funny unless they dig deeper.  In any case, someone had to be a willing buyer. Maybe they have bots that manipulate the price? If they do, I suggest they STOP now and play it clean for the good of the technology and cryptos in general. Raise fees if you have too.... if they raised transfer fees to and from a bank account to .5% or charged a monthly fee of 10 bucks per user or something of that sort they'd make a KILLING compared to trading these 17 almost worthless, low liquidity altcoins.

If I were them I'd have customer service/HR reps posting on this forum at all times to answer questions like this or at least cover their butts.