141–150 of 446 posts
One perk of a public blockchain is that crimes like these are more transparent! A Twitter user 'discovered' the fraud a few months ago: https://twitter.com/cobie/status/1513874972552355846
Earlier quoted context omitted.
I wonder how many wallets you would need before it becomes a problem to track. I would guess in the millions or more since graph algorithms are pretty efficient these days.
How long of a linked list do you need to be unable to reach its tail?
>On May 11, 2022, Coinbase’s director of security operations emailed ISHAN WAHI to inform him that he should appear for an in-person meeting relating to Coinbase’s asset listing process at Coinbase’s Seattle, Washington office on Monday, May 16, 2022. ISHAN WAHI confirmed he would attend the meeting. Anyone know why Coinbase would set up this meeting if they knew it was him? Was it a bluff to see if he'd flee? Or wer…
I know a lot of local police like to go into homes with guns blazing, but the smart cops would much rather set someone up outside of their home where they're less likely to be armed and bunkered. If I were a cop arresting somebody in their home would be my worst case scenario IMO.
https://www.cbc.ca/news/canada/hamilton/rodger-kotanko-self-...
Why are they being prosecuted? Those are not securities, or are they? "Wire fraud" implies that they defrauded someone by lying to their own advantage over a digital channel. Insider trading is generally legal for non-securities. EDIT: I am not implying that they shouldn't, on a moral level. They should! I am asking about legal technicalities, and about the state of law around those issues.
FTA - “. . . wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets. . .”
I’m presuming that it’s the fraud they are going after, and the “insider trading” aspect is verbal sugar.
I can’t imagine that insider trading would ever apply to real estate or art, so not sure why it’s even mentioned here.
IANAL, so perhaps someone wiser than me can add some clarity here?
Earlier quoted context omitted.
I mean, this is exactly what happens when you work for a hedge fund. You have to provide statements for all trading accounts you and your immediate family own. So, yeah, this is exactly what coin base should be doing. They should require all employees to list all account addresses they have access to. It's a trivial ask for the employee and its trivial to scan
I worked for an investment bank for many years. We had to sign a declaration that we would not make trades of any kind without permission from compliance (the withholding of this permission in 2012 is why I am not a BitCoin millionaire). However, there was no requirement to hand over login details to brokerage accounts etc. I would be surprised if there was elsewhere.
Earlier quoted context omitted.
A lot of people suspect there's ""official"" insider trading at the exchanges; there's no reason for the exchange not to front-run orders or fake the order book if they think they can get away with it. Or trade against heavily leveraged positions to liquidate them. Or prop-trade with the customers' money.
Crypto people love to talk about incentives when referring to things like crypto adoption by the market, or corrupt actions on the part of incumbent powers like bankers or politicians. They are much less enthusiastic about discussing incentives when it comes to things like exchange operatiors front running their clients, centralizing forces in crypto generally, etc.
It talks volumes about the internal controls at CB that it took a tweet to expose this. Given the speed with which they grew last two years I expect their financial and security processes to be next to nothing. This is just tip of an iceberg. Insiders would have made tens of millions over last two years of bull run, if not more. This dude just got greedy and unlucky to get caught just as the crypto bubble began burst…
A lot of people suspect there's ""official"" insider trading at the exchanges; there's no reason for the exchange not to front-run orders or fake the order book if they think they can get away with it. Or trade against heavily leveraged positions to liquidate them. Or prop-trade with the customers' money.
It talks volumes about the internal controls at CB that it took a tweet to expose this. Given the speed with which they grew last two years I expect their financial and security processes to be next to nothing. This is just tip of an iceberg. Insiders would have made tens of millions over last two years of bull run, if not more. This dude just got greedy and unlucky to get caught just as the crypto bubble began burst…
Anyone who has used any leverage trading on any exchange knows that the exchange has visibility into your positions and will run your stops. Open secret in the industry. Unregulated markets promote all sorts of bad actors. And since the returns are wild anyway, everyone just accepts it.
Why are they being prosecuted? Those are not securities, or are they? "Wire fraud" implies that they defrauded someone by lying to their own advantage over a digital channel. Insider trading is generally legal for non-securities. EDIT: I am not implying that they shouldn't, on a moral level. They should! I am asking about legal technicalities, and about the state of law around those issues.
I have this same question. Crypto has not been defined as an asset category yet (and the SEC has not declared it to be a “security” so far). FTA - “. . . wire fraud conspiracy and wire fraud in connection with a scheme to commit insider trading in cryptocurrency assets. . .” I’m presuming that it’s the fraud they are going after, and the “insider trading” aspect is verbal sugar. I can’t imagine that insider trading w…
Why are they being prosecuted? Those are not securities, or are they? "Wire fraud" implies that they defrauded someone by lying to their own advantage over a digital channel. Insider trading is generally legal for non-securities. EDIT: I am not implying that they shouldn't, on a moral level. They should! I am asking about legal technicalities, and about the state of law around those issues.