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Screenshot of a breaking news alert e-mail from Q2 2017
One of the largest cryptocurrency exchanges, Coinbase, launched Bitcoin Cash on their platform, and just hours after the announcement, they halted the trading of the newly added product on their exchange. Just before Coinbase launched Bitcoin Cash, the price of the digital currency was rising and this rise happened just hours before the launch on the exchange.
Coinbase immediately halted the trading of Bitcoin Cash, after the rumors of insider trading at the exchange went viral. They reported the halt as happening due to “significant volatility”. However, the press now disputes whether Coinbase employees have “benefited” immensely before Bitcoin Cash went live on Coinbase. The CEO of the exchange, Brian Armstrong, claims that employees were “prohibited from trading in bitcoin cash for several weeks”.
As a result, Coinbase promised to conduct a probe into whether employees have really violated the ban. According to Armstrong’s post:
“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter.If we find evidence of any employee or contractor violating our policies — directly or indirectly — I will not hesitate to terminate the employee immediately and take appropriate legal action.”
Bitcoin Cash has now skyrocketed and was trading at around $3,775 today, according to CoinMarketCap.