The ongoing investigation on insider trading with Bitcoin Cash in Coinbase exchange has ended with a positive outcome as no such actions were discovered.
Spokes person from Coinbase had revealed that their “independent internal investigation” has been finalized and the company has been “determined to take no disciplinary action” as the months-long investigation by two national law firms had taken place. A statement by the spokesperson has been released as follows:
“We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated. We can report that the voluntary, independent internal investigation has come to a close, and we have determined to tahe no disciplinary action.”
At first Coinbase had refused to add Bitcoin Cash support on their exchange, but some time later they have changed their decision and announced the coin listing shall take place by January 1. Rumors surrounding insider trading have emerged on December 19 when the exchange had listed Bitcoin Cash on their platform at the moment when the price of the coin was over 3000 dollars.
This move has started a fire of accusations towards the exchange’s employees for insider trading and the same day the senior manager Brian Armstrong published a blog article stating the high standards of employees when it comes to insider trading.
Although the investigation did not uncover any wrong doing, a class action lawsuit against the company by its customers has taken place and its still ongoing at this moment.
The lawsuit is asking for damages for negligence imposed by Coinbase and violation of consumer protection laws.