Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

Post by JumpCrisscross » Thu, Jul 21, 2022, 6:54 PM UTC

H8crilA wrote: post #159

potamic wrote: post #154

Earlier quoted context omitted.

It's in the release, > U.S. Attorney Damian Williams said: “Today’s charges are a further reminder that Web3 is not a law-free zone. Just last month, I announced the first ever insider trading case involving NFTs, and today I announce the first ever insider trading case involving cryptocurrency markets. Our message with these charges is clear: fraud is fraud is fraud, whether it occurs on the blockchain or on Wall St…

> Why do you say insider trading is legal for non-securities? What, exactly, prohibits you from doing that? Certainly not the Securities Act of 1933 or any SEC rule. Overall maybe this is a complicated way of officially calling them securities and cleaning this mess on a higher level. At least that's what the FBI implies. However, it is not up to the FBI to decide what is a security, but rather up to the courts of la…

Post by Mo3 » Thu, Jul 21, 2022, 6:56 PM UTC

romellem wrote: post #16

Wow, the indictment references [this tweet][1] that caused Coinbase to investigate the matter and ultimately led the defendant in being caught at the airport before trying to leave the country. > 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 offic…

Post by jmoak3 » Thu, Jul 21, 2022, 6:57 PM UTC

Post by Solvitieg » Thu, Jul 21, 2022, 6:57 PM UTC

Spooky23 wrote: post #172

vishnugupta wrote: post #56

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…

Coinbase is an awful company. I signed up for a debit card for some reason, and it immediately became a fraud target. Someone tried to use it at a restaurant in South Africa, a store in Singapore and a mobile provider in Moldova. The card was obviously compromised, and the only reason I didn’t lose money is that I didn’t make any available. So called, emailed, texted Coinbase on 5 different occasions and they never d…

Post by siftrics » Thu, Jul 21, 2022, 6:58 PM UTC

munificent wrote: post #103

j0hnyl wrote: post #60

Earlier quoted context omitted.

Who is the victim here?

It is a shared good that benefits all participants for a market to be efficient. Insider trading reduces market efficiency.