Trading of Bitcoin Cash temporarily suspended pending an investigation
- Author: Wendy Palmer Dec 21, 2017,
Dec 21, 2017, 0:55
"We have been monitoring the bitcoin cash network over the last few months and have made a decision to enable full support including the ability to buy, sell, send and receive", Coinbase said in its announcement via a blog post. However, on GDAX (Coinbase's trading platform), it simply exploded, which has lead Coinbase to consider the possibility of insider trading.
His comments followed accusations that Coinbase employees may have secretly profited following the launch of Bitcoin Cash - a new form of cryptocurrency which opened for trading on the website on Tuesday (19 December) at higher values than other exchanges. On Tuesday night, bitcoin cash surged over $3,000, setting a new record high.
At the time of writing, bitcoin cash is the third most popular cryptocurrency in the world, with ethereum in second place and bitcoin remaining at number one.
"Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter", the Coinbase CEO said in a blog post.
Moreover, "employees and contractors (of Coinbase) were explicitly prohibited from trading Bitcoin Cash and disclosing launch their plans over a month ago", stated Brian. Armstrong wrote, "If we find evidence of any employee or contractor violating our policies-directly or indirectly-I will not hesitate to terminate the employee immediately and take appropriate legal action". Coinbase froze transactions just a few hours after they began in order to investigate numerousaccusations of insider trading.
Bitcoin has soared to new highs this month as regulated US derivatives exchanges in Chicago started trading futures in the unit.
Bitcoin cash was created on August 1 when Hong Kong-based exchange Bitfinex said a minority of bitcoin miners would create a new version of bitcoin to make trading faster and easier. "Factors we considered include developer and community support, security, stability, market price and trading volume".