Coinbase a top U.S. cryptocurrency wallet provider and exchange was granted a motion to dismiss a lawsuit over alleged insider trading during its start-up of Bitcoin Cash (BCH ) support last year.
The Judge Vince Chhabria from the Northern District Court of California dismissed the claim. He did this on ground that the plaintiff Jeffrey Berk, an Arizona resident did not present enough legal backing for his claims.
Berk representing all Coinbase customers who allegedly suffered loss as a result of the exchange’s action first filed the case in March. Berk insists that the exchange’s action of insider trading during its launch of BCH support between the 19th -21st of December 2017 was illegal.
Berk alleges that Coinbase employees and other insiders profited from the trade on the basis of non-public information. He stated that Coinbase tipped off its own employee on when it would fully commence supporting BCH. On December 19, 2017, Coinbase opened up its books to the buying and selling of BCH. Those who had allegedly been tipped off swarmed Coinbase with buy and sell orders and got BCH at fair prices. Berk alleged that this action unfairly drove up the price of BCH for non-insider traders.
In August last year, Bitcoin Cash made its official hard fork from the original Bitcoin source code. Investors who used exchanges such as Coinbase were initially not informed about the airdrop of forked coins. Coinbase made promises to investors that Bitcoin Cash (BCH) would be supported by the transaction at the end of 2018. Coins that were available at the time of the fork would also be included. However, no exact date was given by Coinbase as regards adding the currency to the exchange.
The judge dismissed the motion without prejudice. Berk and his legal representatives can however file an amended complaint within 21 days.
What do you think about the case? Share your opinion with us in the comment section below.
Image credit: Pixabay
The Information provided on the website is designed to provide helpful information regarding cryptocurrency subjects. The content is not meant to be used, nor should it be used as a basis, foundational knowledge or prerequisite for decision making regards trading. Always do your own research and due diligence before placing a trade. We are not liable for any outcome based on any content found on the site.
Crypto Exchange Binance Might be Investigated for Money Laundering in India
What are shitcoins? Watch this Video to learn
Appealing to Regulators, Binance launches a Tax Reporting Tool
Leaving China, Crypto Exchanges Cancels Most of their Chinese Businesses
Patricia sponsors Big Brother Naija the 2nd time after recording 13k Users in 12 Hours
Yes! Bitcoin at $38k, See Why they Say It Has A Mind of its Own
The CBDC will lower the cost of doing business – CBN
Nigeria’s CBDC to Run on Hyperlegder Fabric
NatWest Suspends Payments to Binance
Watch the Latest Edition of Inside Blockchain – 29th Nov. 2020
Crypto Roast is LIVE – 27th Nov. 2020
AMA Series with Beam CTO & Tech Lead, Alex Romanov
Keep it Locked on to Cryptotvplus
Inside Blockchain | 16.11.2020
How Blockchain Technology Can Transform Governance In Africa
Inside Blockchain: WHY YOU SHOULD BECOME A BLOCKCHAIN DEVELOPER
Hedge Trading on OKEx
Trading cryptocurrency seems cumbersome to new traders, especially those new to the crypto space. There have been a lot of...
The Chances of BTC Dropping to 40k Is Slim – Prateek Suri
The founder and Chief Executive Officer of the Maser group, Prateek Suri joined Tony Obiajuru this morning, 15th March, 2021...
Binance Smart Chain; CeFi or DeFi?
The controversy around whether or not the Binance Smart Chain is centralized or decentralized was cleared on the Inside Blockchain...
How Earnathon is Making Crypto Adoption Easier
Earnathon is making cryptocurrency education and adoption easier with its unique learn and earn platform. It’s no news that the...
NaijaCrypto CEO Says CBN Cannot Ban Cryptocurrency Trading
The Chief Executive Officer of NaijaCrypto, Chiagozie Iwu has said on the Inside Blockchain Show powered by CryptoTVPlus that the...