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Charged for what? There is no "insider trading" with cryptos, just as there isn't any with Forex, fiat currencies. He can't be charged, because there is no crim

Charged for what? There is no "insider trading" with cryptos, just as there isn't any with Forex, fiat currencies. He can't be charged, because there is no crime. No law prevents you to trade cryptocurrencies or fiat on insider knowledge. Might be unethical, but not illegal.

tdhoot 4y ago
The article says Wire Fraud and Conspiracy.
andrewljohnson 4y ago
There is actually no particular law against insider trading at all, not even related to equities… it’s all securities and wire fraud. https://www.bloomberg.com/opinion/articles/2022-06-02/don-t-insider-trade-nfts#xj4y7vzkg https://www.bloomberg.com/opinion/articles/2022-06-02/don-t-...
- dragonwriter 4y ago
  > There is actually no particular law against insider trading at all, not even related to equities… There actually is. See, well, a whole lot of 15 USC Chapter 2B [0], notably provisions like 15 USC Sec. 78p (prohibiting certain trades by corporate insiders, and creating civil liability of those conducting such trades to the issuer of the security thus traded) and 78u-1 (authorizing civil penalties by the SEC for insider trading made illegal by the Securities and Exchange Act.) What Bloomberg probably meant to say is that there is not a distinct crime of insider trading, but that illegal insider trading is generally also the crime of securities fraud. [0] https://www.law.cornell.edu/uscode/text/15/chapter-2B https://www.law.cornell.edu/uscode/text/15/chapter-2B
jc_811 4y ago
Everything Everywhere Is Securities Fraud: https://www.bloomberg.com/opinion/articles/2019-06-26/everything-everywhere-is-securities-fraud https://www.bloomberg.com/opinion/articles/2019-06-26/everyt...
choppaface 4y ago
Inside trading is fraud, no matter the security or property, same as with Opensea NFT case: https://www.justice.gov/usao-sdny/pr/former-employee-nft-marketplace-charged-first-ever-digital-asset-insider-trading-scheme https://www.justice.gov/usao-sdny/pr/former-employee-nft-mar... The main problem with crypto is it forces us all to have to re-learn why fraud is bad, and in the process it allows those in power to arbitrage the fraud-learning itself. Satoshi explicitly remarks that fraud is a critical weakness of crypto. Regulations and laws might suck, but when so many societies have adopted anti-fraud mechanisms, hey maybe that was actually a good idea and not something we need to re-learn? Even Roughgarden’s textbook proves the vulnerabilities of blockchain-based mechanisms.. .. Maybe crypto advocates citing false straw man arguments should be considered investment advice and punished by the SEC as well.
aakilfernandes 4y ago
IANAL but I believe the legal theory is they stole proprietary information from Coinbase (information about an upcoming listing) and used it for personal profit. The "victims" in this view are NOT users of the exchange (or the broader cryptocurrency market) but rather shareholders of Coinbase.

tdhoot 4y ago

The article says Wire Fraud and Conspiracy.

andrewljohnson 4y ago

There is actually no particular law against insider trading at all, not even related to equities… it’s all securities and wire fraud. https://www.bloomberg.com/opinion/articles/2022-06-02/don-t-insider-trade-nfts#xj4y7vzkg https://www.bloomberg.com/opinion/articles/2022-06-02/don-t-...

dragonwriter 4y ago
> There is actually no particular law against insider trading at all, not even related to equities… There actually is. See, well, a whole lot of 15 USC Chapter 2B [0], notably provisions like 15 USC Sec. 78p (prohibiting certain trades by corporate insiders, and creating civil liability of those conducting such trades to the issuer of the security thus traded) and 78u-1 (authorizing civil penalties by the SEC for insider trading made illegal by the Securities and Exchange Act.) What Bloomberg probably meant to say is that there is not a distinct crime of insider trading, but that illegal insider trading is generally also the crime of securities fraud. [0] https://www.law.cornell.edu/uscode/text/15/chapter-2B https://www.law.cornell.edu/uscode/text/15/chapter-2B

jc_811 4y ago

Everything Everywhere Is Securities Fraud: https://www.bloomberg.com/opinion/articles/2019-06-26/everything-everywhere-is-securities-fraud https://www.bloomberg.com/opinion/articles/2019-06-26/everyt...

choppaface 4y ago

Inside trading is fraud, no matter the security or property, same as with Opensea NFT case: https://www.justice.gov/usao-sdny/pr/former-employee-nft-marketplace-charged-first-ever-digital-asset-insider-trading-scheme https://www.justice.gov/usao-sdny/pr/former-employee-nft-mar... The main problem with crypto is it forces us all to have to re-learn why fraud is bad, and in the process it allows those in power to arbitrage the fraud-learning itself. Satoshi explicitly remarks that fraud is a critical weakness of crypto. Regulations and laws might suck, but when so many societies have adopted anti-fraud mechanisms, hey maybe that was actually a good idea and not something we need to re-learn? Even Roughgarden’s textbook proves the vulnerabilities of blockchain-based mechanisms.. .. Maybe crypto advocates citing false straw man arguments should be considered investment advice and punished by the SEC as well.

aakilfernandes 4y ago

IANAL but I believe the legal theory is they stole proprietary information from Coinbase (information about an upcoming listing) and used it for personal profit. The "victims" in this view are NOT users of the exchange (or the broader cryptocurrency market) but rather shareholders of Coinbase.