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Coinbase Insider Trading Lawsuit Dismissed

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Coinbase Insider Trading Lawsuit Dismissed

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A lawsuit accusing US-based major cryptocurrency exchange Coinbase of insider trading has been dismissed in court.

Arizona resident and plaintiff in the case, Jeffrey Berk, filed a class action lawsuit in March accusing Coinbase of ”tipping off its own employees” of an upcoming Bitcoin Cash (BCH) support on the platform a month before it was launched to customers. He claims that this meant that all those who had been informed ”immediately swamped Coinbase and the GDAX with buy and sell orders, thinning the liquidity but obtaining BCH at fair price” as soon as it went live on 19 December 2017.

Court documents released this week show, however, the judge overseeing the case did not think Berk had sufficient evidence to back up his claims. US District Judge Vince Chhabria from the Northern District Court of California said that he ”fails to describe the scope or content of Coinbase’s duty in anything more than broad generalities. A reader of the Complaint is thus left wondering what Coinbase should have done differently, or why the rollout of Bitcoin Cash would have gone more smoothly had Coinbase done whatever Berk thinks is appropriate.”

Berk and his legal representation have 21 days to appeal the ruling by filing an amended complaint if they wish to further pursue his claim that Coinbase ”unfairly dr[o]ve up the price of BCH for non-insider traders once BCH came online on the Coinbase exchange.”

In another closed crypto case this week, a New York judge dismissed anguished investor Alex Brola’s case against the developers of Nano (XRB), in which Brola claimed the core development team both breached US securities laws and failed to accurately represent the reliability of Italy-based crypto exchange BitGrail. Brola claimed that its negligence contributed to the theft of USD 187 million in XRB in February.

 

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