Connect with us

Bitcoin News

Judge: Coinbase can be sued for Bitcoin Cash listing, was negligent



A U.S. judge has ruled Coinbase can be sued for negligence over its contentious 2017 Bitcoin Cash (BCH) listing, describing the actions of the iconic U.S. cryptocurrency exchange as constituting “incompetence born of haste”, Bloomberg reported.

The news sheds light on the progress of a class-action lawsuit filed in 2018 by Coinbase customer Jeffrey Berk, which leveled a host of allegations at the San Francisco-based exchange including that it had been negligent, instigated insider trading, and violated consumer protection laws in its listing of BCH.

Coinbase Refutes Bitcoin Cash Insider Trading Allegations

Related: Coinbase Refutes Bitcoin Cash Insider Trading Allegations

The debacle dates back to December 19, 2017, when Bitcoin Cash began to surge hours before a “surprise announcement” by Coinbase that the crypto would be listed on its institutional platform, GDAX (now Coinbase Pro). Minutes after the announcement, BCH skyrocketed nearly $1000 in price and was paused for trading on the exchange.

As reported previously by CryptoSlate, Coinbase has publicly denounced allegations that insider trading occurred after concluding independent investigations into the matter.

Buyers can sue, sellers miss out

U.S. District Judge Vince Chhabria had in fact thrown out the original Berk v. Coinbase suit, but deemed that its successor—an amended class-action giving more details on how alleged insider traders could have profited off the listing—gave a “plausible account that Coinbase breached its duty to maintain a functional market.”

Per Chhabria’s latest ruling, the suit’s claim of negligence can proceed, and only buyers of Bitcoin Cash can move forward with legal proceedings. The claims of sellers, who said they were unable to sell BCH at a profit after trading ceased, did not constitute negligence in the judge’s eyes and have been dismissed.

Did Coinbase hurry the listing deliberately?

Chhabria, however, validated buyers in their claim that Coinbase had rushed the listing in order to “depress the price of BTC, and impact the futures contracts and futures trading” on Chicago Mercantile Exchange (CME), which had launched the day prior—an event popularly attributed to causing the precipitous decline of Bitcoin down from its all-time high on December 17th, 2017.

In vindicating this allegation, the judge may have renewed suspicions Coinbase hastily listed BCH for insider profit—namely, on the futures markets.

Filed Under: Bitcoin Cash, Coinbase

Jonnie Emsley

Jonnie Emsley is a freelance writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. Discovering new corners of Southeast Asia and emerging cryptocurrencies give him a buzz like none other.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Like what you read? Give us one like or share it to your friends
original post…

Continue Reading

Recent Posts

Copyright © 2019 The Crypto Report