[2018-03-05] Coinbase Hit by Lawsuit Over Alleged Insider Trading

[shakaru]

ryptocurrency exchange Coinbase has been hit by a class action lawsuit over alleged insider trading during its launch of bitcoin cash.

According to a court document dated last Thursday, the case has been brought by Jeffery Berk, representing a group of investors that placed trading orders on Coinbase or its order book trading platform GDAX from Dec. 19-21, 2017.

https://www.coindesk.com/coinbase-hit-lawsuit-alleged-insider-trading/

[richardsNY]

It's too difficult to actually collect sufficient enough proof to win this battle from Coinbase. If turns out that certain employees have indeed been 'leaking out' precious information, then the opposing party might have a slightly higher chance to succeed, but it's still negligible at that point. On the other hand, butthurt traders are sore losers, and for that reason like to blame all types of external reasons for their losses, while in reality it's their own greed that resulted in being their own downfall. I wonder why no one yet attempted to sue Poloniex for their obvious insider trading. Moments before Poloniex announced that certain coins would be delisted, each coin tanked badly, which should be reason enough to sue them....

[IconFirm]

Centralized exchanges......when will people learn not to use them?

[gentlemand]

As no laws apply to the actual trading of cryptocurrencies, what can they prosecute? It's not the stock market. It's a filthy free for all.

I certainly agree that Coinbase's launch was dodgy as fuck that bears no resemblance to ethical behaviour, but having your feelings hurt is a bit different to smashing actual laws.