Coinbase accused of insider trading by its customers

Author: Justin Low | Category: Cryptocurrency

Coinbase has been slapped with two class-action lawsuits by disgruntled customers

The first is alleging that employees were tipped off a month in advance on the news that the exchange would offer Bitcoin Cash in December, which allowed said employees to instantly swamp the exchange with buy and sell orders - leaving other traders at a great disadvantage.

At the time, Coinbase CEO Brian Armstrong said the exchange would investigate on the matter but the lawsuit statement says that to date, the result of the purported investigation is yet to be disclosed.

The second lawsuit is accusing the exchange of keeping funds and failing to deliver cryptocurrencies on behalf of customers who doesn't own an account with the exchange. The case in hand was that two men claimed that they were unable to redeem Bitcoin that has been transferred to them via Coinbase to their email addresses.

They allege that when they tried to recover the Bitcoin, the links provided by Coinbase were broken and regarding the lawsuit, they say that they "want to represent thousands of other people" in the same position.

The first one is still pretty much as obvious as things can be, but it's highly unlikely that they would get caught in doing so. After all, what regulations are there in place for stuff like these anyway?

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose