Against Coinbase filed a collective lawsuit

Against Coinbase filed a collective lawsuit

In large American cryptocurrency platform and wallet Coinbase had filed a class action lawsuit, which claims that its employees and other insiders received benefits from trading based on nonpublic information about support for Bitcoin Cash (BCH) in December last year.

March 1 in U.S. district court for the Northern district of California a Coinbase user and citizen of Arizona Jeffrey Burke, which are represented by two law firms, the complaint was filed, which begins with the words:

“On behalf of all users of Coinbase, which has opened orders for the purchase or sale in the period from 19 December 2017 21 December 2017 … and who suffered financial losses as a result of delinquency by the defendant”.

The plaintiff accuses Coinbase in “artificially inflating prices” Bitcoin Cash by means of disclosure orders to buy and sale a few seconds after the 19 December Coinbase has launched support for Bitcoin Cash. This may have led to the fact that the price of bitcoin has increased more than 130 percent – from $1885 18 Dec up to $4300 20 Feb.

Bitcoin Cash appeared in August 2017, as a result, the hard forks of Bitcoin. In the day when it was launched on Coinbase, senior Manager, Brian Armstrong has published a blog post that Coinbase employees must follow the trading policy which applies to all trading actions on any platform and prohibits the disclosure of information not related to the public:

“Given the growth rates in the hours before the announcement, we will investigate on this issue. If we find evidence that any employee or contractor violates the rules – directly or indirectly – I immediately fired him and initiate appropriate judicial proceedings.”

February 23, Coinbase sent about 13,000 of its customers official notification that information about them will be submitted to the internal revenue Service United States (IRS) in the context of litigation between the IRS and the stock exchange.

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