​Results of internal investigation of Coinbase

​Results of internal investigation of Coinbase
Jul 30, 2018 by Rico Wise

The accusations towards the Coinbase cryptoexchange, implying insider trading of the BCH digital currency prior to its listing found no grounds after a thorough investigation.

The cryptoexchange tasked two separate law firms to conduct a private inquiry on the matter. Both firms failed to detect any violations or inconsistencies, thereby releasing the exchange from the necessity of taking other actions.

Starting from last winter, the dominant cryptoexchange of the United States was pursued by numerous allegations connected with its unexpected listing of the BCH digital currency.

The suspicions arose when BCH skyrocketed in price all of a sudden, with roots of spiking demand coming from South Korean traders at the end of December. This coincided with the announcement made by Coinbase, which decided to list Bitcoin Cash, in spite of previously stating to not include the currency before January 2018. Those who purchased the currency prior to the announcement became witnesses to a BCH price surge in a matter of minutes. All this contributed to the increasing suspicion and subsequent accusations towards Coinbase, which probably had something to hide.

Nevertheless, after months of investigations the cryptoexchange can finally state that there were no illegal activities conducted clandestinely.