3 ms·

Wonder if folks at Coinbase did or could have engaged in insider trading? And if they did, does it even fall under SEC jurisdiction or crypto currencies are in

by yumraj 8y ago

Wonder if folks at Coinbase did or could have engaged in insider trading? And if they did, does it even fall under SEC jurisdiction or crypto currencies are in the wild West of insider trading?

gangster_dave 8y ago
This was probably the right thing to prevent insider trading. There was evidence of insider trading when Coinbase added BCH, so they might be just completely avoiding the risk of information leaks.
justboxing 8y ago
> Wonder if folks at Coinbase did or could have engaged in insider trading They'd be fools not to. Cryptocurrency trading is not regulated by SEC type entities (yet). Until it is regulated, you can get away with insider trading and even other activities like wash trading, painting the tape, pump and dump etc.
- JumpCrisscross 8y ago
  > Until it is regulated, you can get away with insider trading You would have criminally mis-used Coinbase’s information which properly belongs to its shareholders. There is no statute against insider trading. It’s all a breach of fiduciary duties.
- prantomone 8y ago
  Not true, you can go to jail for that stuff today. The moment there is a derivative (like a futures contract),the CFTC has jurisdiction (and has already sent subpoenas).
  - justboxing 8y ago
    > Not true, you can go to jail for that stuff today Source? Can you point to a single person prosecuted and sent to Jail for Cryptocurrency insider trading?
    - aik 8y ago
      I don't believe anyone has been caught yet. Coinbase was in trouble after the BCH situation though, both risking an investigation as well as hurting user and investor confidence.
alttab 8y ago
There was plenty of this and speculation thereof when it comes to the BCH launch in December[1]. [1] https://www.coindesk.com/coinbase-hit-lawsuit-alleged-insider-trading/ https://www.coindesk.com/coinbase-hit-lawsuit-alleged-inside...
deleted 8y ago
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dantiberian 8y ago
This is why they are making the announcement now. I would suspect that only a few trusted people would have been involved in making the decision on which tokens to explore. They then made this announcement that they are exploring it at the same time as it was announced internally. > We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets. This would hopefully avoid another class action lawsuit like they did with Bitcoin Cash: https://www.coindesk.com/coinbase-hit-lawsuit-alleged-insider-trading/ https://www.coindesk.com/coinbase-hit-lawsuit-alleged-inside....

by yumraj 8y ago

Wonder if folks at Coinbase did or could have engaged in insider trading? And if they did, does it even fall under SEC jurisdiction or crypto currencies are in the wild West of insider trading?

gangster_dave 8y ago

This was probably the right thing to prevent insider trading. There was evidence of insider trading when Coinbase added BCH, so they might be just completely avoiding the risk of information leaks.

justboxing 8y ago

> Wonder if folks at Coinbase did or could have engaged in insider trading They'd be fools not to. Cryptocurrency trading is not regulated by SEC type entities (yet). Until it is regulated, you can get away with insider trading and even other activities like wash trading, painting the tape, pump and dump etc.

JumpCrisscross 8y ago
> Until it is regulated, you can get away with insider trading You would have criminally mis-used Coinbase’s information which properly belongs to its shareholders. There is no statute against insider trading. It’s all a breach of fiduciary duties.
prantomone 8y ago
Not true, you can go to jail for that stuff today. The moment there is a derivative (like a futures contract),the CFTC has jurisdiction (and has already sent subpoenas).
- justboxing 8y ago
  > Not true, you can go to jail for that stuff today Source? Can you point to a single person prosecuted and sent to Jail for Cryptocurrency insider trading?
  - aik 8y ago
    I don't believe anyone has been caught yet. Coinbase was in trouble after the BCH situation though, both risking an investigation as well as hurting user and investor confidence.

alttab 8y ago

There was plenty of this and speculation thereof when it comes to the BCH launch in December[1]. [1] https://www.coindesk.com/coinbase-hit-lawsuit-alleged-insider-trading/ https://www.coindesk.com/coinbase-hit-lawsuit-alleged-inside...

deleted 8y ago

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dantiberian 8y ago

This is why they are making the announcement now. I would suspect that only a few trusted people would have been involved in making the decision on which tokens to explore. They then made this announcement that they are exploring it at the same time as it was announced internally. > We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets. This would hopefully avoid another class action lawsuit like they did with Bitcoin Cash: https://www.coindesk.com/coinbase-hit-lawsuit-alleged-insider-trading/ https://www.coindesk.com/coinbase-hit-lawsuit-alleged-inside....