Coinbase Staff Accused Of Insider Trading

Coinbase Staff Accused Of Insider Trading

Coinbase has launched investigations on the claims that its employees might have benefited from insider information where it plans to add Bitcoin Cash support on its GDAX Exchange platform.

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Coinbase has launched investigations on the claims that its employees might have benefited from insider information where it plans to add Bitcoin Cash support on its GDAX Exchange platform. Coinbase, the leading Bitcoin trading app in the US, made the announcement last evening that it will start to trade using Bitcoin Cash– the backbone of bitcoin cryptocurrency.

Just a few hours before this launch, the prices of Bitcoin had already shot up, leading to claims that Coinbase staffs were buying the coins and after that trade them at a profit. As Bitcoin Cash Prices went up on the Coinbase exchange, the company moved fast to stop orders from taking its service offline because of the high liquidity.

Brian Armstrong, Coinbase CEO, acknowledged the concerns and promised that they would conduct serious investigations on the matters raised. He further promised that if any of his contractors or employees were found breaching their policies either indirectly or directly, they would not hesitate to take a suitable legal action. Such employees will be terminated immediately without any notice.

He stated that it is the policy of the company that no staff or contractors are allowed to trade using Bitcoin Cash. The law forbids employees to disclose any confidential information about its launch plans conducted last month.

He further said that the company policy was communicated to all employees severally using multiple channels. Brian believes that it is his sole responsibility to set a good example of how employees must behave to ensure that Coinbase stays successful.

He further reiterated that the trading restrictions are going to be effective immediately. They will also affect any personal trading operations on any platform. Once investigations are completed, the investors using Coinbase exchange platform will regain their confidence. But they can rest assured that Brian Armstrong and his team are working round the clock to resolve the matter as soon as possible.

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