Ver indicates Coinbase Insider Trading allegations a ‘Non-Crime’
CEO Roger Ver claims allegations is not a reason to increase regulations
Roger Ver, CEO of famous Bitcoin.com defends the United States cryptocurrency exchange Coinbase on insider trading. Allegations of possible insider trading of Bitcoin Cash by employees of Coinbase came in, after unusual trading activity on 19th December 2017. Ver says such Coinbase insider trading is a “non-crime” and should not be a reason to increase the regulations on cryptocurrency exchanges.
Ver speaking at an interview with CNBC on Bitcoin Cash mentions the current investigations on unusual price behavior on GDAX Coinbase exchange is not something illegal. He believes it is not illegal, even if there were unfair actions by the employees.
‘Not a Crime’ according to Ver
Ver says, “I think insider trading is a non-crime,” in reply to a question regarding the requirement for increasing regulations within cryptocurrency exchanges. He suggests that investors need to be careful and aware on the services and no new regulations in necessary;
At the end of the day, buyers beware of whatever service they’re using whether it’s a Bitcoin exchange, or whether it’s a coffee shop… don’t depend on the government to keep you safe from everything out there in the world.
He adds that Bitcoin Cash (BCH) trading with insider information before adding the digital currency to the platform would have lessened the volatility. BCH reached 9,000 USD during the GDAX trading of Coinbase on 19th December 2017. This is relatively high in comparison to the current market price of BCH which is 2,310 USD.
Incident behind the allegations
BTC and BCH analyst Tone Vays mentions about a Reddit thread in which a user mentions about a colleague at Coinbase. This colleague has informed the user beforehand on Bitcoin Cash’s arrival to the platform.
The Reddit user “mukiwa2” has deleted his comments. But, Tone Vays shared another Tweet with the comments taken from an archive. Below is an extract taken directly from the Reddit archive before deleting the comments;
Fast Money view on the incident
CNBC is involving as well on BCH scandal when Fast Money segment tweeted aligning with Ver’s stance on Bitcoin Cash. The comments on the tweet claims the segment as promotional and biased.
Gaby Wasensteiner, Marketing Manager of CNBC is married to an active Bitcoin Cash executive who has been seen photographed with Ver. Wasensteiner retweeted the post put up by her husband regarding the BCH meetup in London.
“Trading Policy” after Coinbase Insider Trading allegations
Brian Armstrong, CEO and co-founder of Coinbase released a “Trading Policy” for the employees. This was published on 20th December 2017 through a blog post. He mentions about ongoing investigations on possible Coinbase insider trading before the launch of BCH in the platform. According to Armstrong, the company will take actions if the allegations are found to be true;
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.