July 26, 2018 184By Robert Johnson
“A class-action lawsuit was filed against Coinbase in March 2018 by Jeffery Berk, a customer. Berk claimed that Coinbase employees flooded the exchange with orders as soon as the announcement was made, which they were able to do because they knew about it beforehand. People who did not have the privilege of working at Coinbase were thus at a disadvantage – the suit claims that the behaviour cost the public $5 million. The case is still in the procedural stages.”See the full report for yourself, here. If insider trading has taken place that Coinbase hasn’t picked up on, then hopefully if the lawsuit suggests otherwise they take appropriate action. If however on the flipside, it turns out Coinbase are actually trying to cover something up here, then we could have a very different outcome on our hands. As mentioned, insider trading would not have been illegal, it it will indeed have severe consequences for Coinbase, tarnishing its name and certainly reducing the trust of its customers.