Against cryptocurrency exchanges Сoinbase was filed a class action lawsuit in connection with alleged insider trading during the launch of Bitcoin Cash.
According to the court document, dated last Thursday, a lawsuit was filed by Jeffrey Burke (Jeffery Berk), acting on behalf of a group of investors who placed orders on Coinbase or her trading platform GDAX from 19 to 21 December 2017.
The plaintiffs accuse the company of leaking information before the official launch Bitcoin Cash (BCH). Also, a group of investors accused the firm of negligence and is seeking damages, the amount of which will be determined during the trial.
When on 20 December the company launched Bitcoin trading Cash, price BCH instantly jumped. Soon, social networks were accusations and assumptions about what employees of the company may, had already warned several traders. The company said it would investigate, whether there could be someone from her staff to break the rules of insider trading.
According to the plaintiffs, the firm did not disclose the full results of its investigation, and also violated the Law on unfair competition in California.
“Deal all the customers Coinbase was finalized only after the insiders have raised the price on the BCH, which the remaining clients received BCH at artificially inflated prices,” reads the complaint.
Recall that in mid-December, Coinbase also temporarily suspended trading Bitcoin Cash almost immediately after starting. According to the official, this was due to the fact that the sudden influx of users and new capital has created an impermissible burden on the site.