Coinbase is investigating whether its employees took advantage of inside knowledge to profit on the launch of bitcoin cash (BCH) when it was added the popular crypto exchange.
Armstrong said that Coinbase staff, friends and family have been forbidden from trading BCH for the past month while it formulated plans to list the coin on its exchange. That, he said, is line with policy over ‘inside info,’ including when Coinbase added support for Ether last year and Litecoin this year.
We’ve had a trading policy in place for some time at Coinbase. The 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,” Armstrong explained.
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