Coinbase Reveal Results of Internal Investigation
Coinbase has unofficially disclosed that its internal investigation that was aimed at exposing insider trading of Bitcoin Cash came up with no evidence of criminal activity.
The largest cryptocurrency exchange in the US told Fortune in private comments that as of last week, the highly-expected investigation has reached its conclusion, but that “no disciplinary action” would be applied.
“We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated,” said a representative.
“We can report that the voluntary, independent internal investigation has come to a close, and we have determined to take no disciplinary action.”
Coinbase was first accused of insider trading operations when the exchange rolled out support for Bitcoin Cash in early December 2017. Before this listing, the coin’s price saw a noticeable increase, while not long after its introduction, Coinbase stopped all trading because of the large number of users that over-capacitated its platform.
Those actions generated a lot of suspicion from the crypto community, particularly on social media, where commentators did not hold back on venting criticism at both Coinbase and Bitcoin Cash, which had already gained a controversial reputation.
During that time, Roger Ver, an ardent Bitcoin Cash advocate, viewed insider trading as a “non-crime.”
“If a bunch of people had traded in advance, then the price wouldn’t have been nearly as volatile,” he said with regards to the initial Coinbase launch.
When the investigation came to an end after six months, the news of such event failed to impress or please some members of the public, prompting Blockstream CSO Samson Mow and developer Udi Wertheimer to respond with cynicism.
“Thank god they cleared themselves of wrongdoing,” Mow wrote in his Twitter post.
“Internal investigative committee finds that I did not, in fact, eat what remained of that pizza last night, and that it most likely vanished into thin air,” tweeted Wertheimer.