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| February 18, 2018

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Accusations Archives -

Foes Blame Scientology for Haggis Rape Accusations

January 16, 2018 |

The co-hosts of A&E series Scientology and the Aftermath are defending fellow ex-Scientologist Paul Haggis, suggesting the church may be behind sexual misconduct accusations against him , which include two allegations of rape. In an open letter , Leah Remini and Mike Rinder say it is “very suspect” when people “seek hush…
Newser

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations

December 20, 2017 |

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations

The operation had been underway for weeks. Had all gone to plan, Coinbase and Gdax customers would have awoken on Wednesday morning to discover that bitcoin cash trading had finally been added. Traders would relish the liquidity this new market would bring, the exchanges would scoop up more fees, and bitcoin core maximalists would soon be able to offload their bitcoin cash. In the event, everything went worse than expected.

Also read: Bitcoin Cash Jumps 70% as Coinbase and Gdax Announce Immediate Trading

The Best Laid Plans

Shortly after Coinbase announced trading of bitcoin cash was live, its price – which had already been climbing – rocketed across all exchanges. Shortly afterwards, things swiftly went awry. Traders piled into Coinbase’s sister exchange Gdax, where BCH surged to a premium of $ 8,500 per coin within just four minutes. It was then that Coinbase pulled the plug, suspending trading and leaving buyers high and dry with no means of exiting before the coin corrected to levels consistent with other exchanges.

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations
The sell wall of death

Crypto Twitter went into meltdown, and accusations were flung around suggesting that Coinbase’s inner circle had been allowed to profit off the news in advance. The exchange was forced to issue a rebuttal strongly denying these claims, but their pleas fell on deaf ears. One legal mind opined that Coinbase could be susceptible to a lawsuit, stating: “Due to the size of the wall, it is very unlikely that the issuer of the sale order is anonymous to Coinbase. If it is, Coinbase may very well be complicit by appearing to work with the seller(s) and prohibiting any sale below that amount.”

Others begged the SEC to intervene, but Blocktower Capital’s Ari Paul countered: “It’s literally impossible to prevent. A team has to integrate a new coin on to the platform. There’s no way to keep a secret that requires a team’s involvement. And there’s no way to prevent those who know the secret from secretly buying cryptocurrency…If you want fair, cryptocurrency isn’t for you. Stick with assets that are based on trusting the regulatory and legal infrastructure.”

A number of anomalies have arisen surrounding the Coinbase/Gdax debacle, starting with the 30% rise of bitcoin cash in the days and hours leading up to the announcement, suggesting that those in the know were profiting off this play. The fact that BCH was launched as a “buy only” option on the exchange is another red flag; had customers been allocated the forked BCH they’ve been waiting on for more than four months, this situation could have been avoided.

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations
Twitter users posted photoshopped memes mocking Coinbase

Insider Trading or Smart Strategy?

There were a few clues that Coinbase was poised to imminently add bitcoin cash. As early as Sunday, a leaked screenshot suggested that BCH markets could go live at any moment. Astute traders capitalized on this to their advantage. Those who didn’t, some might say, are simply FOMO’ing at not having bought in sooner. Nevertheless, the experience has left a bad taste in the mouth of those who bought high and then were prevented from selling at anywhere close to the price they got in at.

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations

In a blogpost on Wednesday, Coinbase CEO Brian Armstrong explained that the company’s insider trading policy:

Prohibits employees and contractors from trading on “material non-public information”, such as when a new asset will be added to our platform. In addition to trading restrictions, it prohibits communication of material non-public information outside the company. This includes to friends and family.

That’s easy to say but virtually impossible to enforce. Short of sequestering staffers, as if they were jurors in a high profile trial, there is no way of preventing word from spreading to friends and associates. Due to the size of Coinbase, any cryptocurrency added can expect a short-term boost in price – and often those gains can be substantial.

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations

Buy On The Rumor

Coinbase isn’t the only entity to have been tried and convicted in the court of public opinion this week. A number of altcoin projects have faced similar accusations from their community. The price of cryptocurrency Einsteinium (EMC2) has soared over the past couple of weeks after its team breathlessly teased at a “mindblowing announcement”.

Investors Call Foul Play as Coinbase Parries Insider Trading Accusations

In the event, the news was not the major partnership that many speculators had hoped for, instead pertaining to an amendment of the coin’s mining algorithm. EMC2 rapidly plummeted in price, forcing the team to issue a reproachful statement which concluded: “Because of the reaction we will never be pre announcing news again.”

IOTA is another altcoin accused of overplaying developments: the coin shot to almost $ 5.10 days ago, buoyed by news of a Microsoft partnership. It later emerged that this partnership was a standard agreement that any company could voluntarily enter into with the software giant.

Brian Armstrong concluded today’s blogpost by stating:

I take the confidentiality of material non-public information very seriously as CEO. Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. 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.

These words will do little to assuage disgruntled traders who are still smarting.

Do you think Coinbase are to blame for today’s events? Let us know in the comments section below.


Images courtesy of Shutterstock.


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The post Investors Call Foul Play as Coinbase Parries Insider Trading Accusations appeared first on Bitcoin News.

Bitcoin News

Co-Anchors ‘Reeling’ From Charlie Rose Accusations

November 21, 2017 |

CBS This Morning aired as scheduled Tuesday with one less anchor chair. But though Charlie Rose was absent, suspended Monday following sexual harassment allegations from eight women, his co-anchors, Gayle King and Norah O’Donnell, made the scandal the program’s top story . “I really am reeling … I am not OK,…
Newser

Commerce Secretary Wilbur Ross faces accusations that he lied about his wealth

November 8, 2017 |

Just a day after defending himself against reports that he failed to disclose his business links to Russian President Vladimir Putin’s family, Commerce Secretary Wilbur Ross came under wider scrutiny Tuesday over his financial holdings and whether he had been forthcoming about his wealth.

Ross’…


L.A. Times – Business

Weinstein Hired ‘Army of Spies’ to Quash Accusations

November 7, 2017 |

In what turned out to be a futile attempt to avoid his downfall, Harvey Weinstein hired an “army of spies” to target women accusing him of sexual assault or harassment and the journalists trying to report on their claims, Ronan Farrow writes in his second explosive Weinstein story in the…
Newser

NPR chief editor is placed on leave after sexual harassment accusations

November 1, 2017 |

The chief editor at National Public Radio, Michael Oreskes, was placed on leave Tuesday after a published report that he abruptly kissed two women who were seeking jobs while he was Washington bureau chief at the New York Times in the 1990s.

The women formally complained to NPR and told their stories…


L.A. Times – Business

New Rape Accusations Against Roman Polanski

October 3, 2017 |

Roman Polanski is now facing sexual assault charges from a fourth woman, the New York Times reports. Renate Langer says the director raped her in February 1972 when she was 15 years old. The 61-year-old former actress says she was visiting Polanski, who she met while working at a modeling…
Newser

$2-million settlement ends accusations that L.A. credit-repair firms misled consumers

June 28, 2017 |

Credit-repair services promise to help consumers fix their credit scores, but there’s only so much they can do. They can help clear up inaccurate or outdated information on a consumer’s credit report, but they can’t erase legitimate dings.

But the Consumer Financial Protection Bureau alleged that…


L.A. Times – Business

Venture capitalist Justin Caldbeck resigns from San Francisco’s Binary Capital after harassment accusations

June 26, 2017 |

Binary Capital co-founder Justin Caldbeck resigned from the San Francisco venture capital firm on Sunday following detailed sexual harassment accusations from multiple female tech entrepreneurs.

Jonathan Teo, who co-founded the investment group with Caldbeck in 2014, announced the resignation in…


L.A. Times – Business