OMG gimme a break, isn't crypto itself a huge insider-trading sort of market? Why is this such a big deal for Coinbase unless there are other intentions behind this arrest?
Yes it is... which is why the hammer needs to come down and hard.
Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
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Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#32Didn’t a handful of Coinbase employees make out like bandits before Ethereum was listed? What’s changed since then?
> Didn’t a handful of Coinbase employees make out like bandits before Ethereum was listed?
I'm interested in this 'claim', Any source for that?
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#33Hmm. Is this actually "insider" knowledge? I personally question the validity of this charge. This employee had knowledge of what COINBASE was going to do with the currency (ie, list it). He had no fiduciary responsibility as pertaining to the coin itself. This is like knowing that Warren Buffer is going to say good thing about Microsoft tomorrow, and buying it today as a result (expecting it to rise). Is that actual…
If your knowledge is privileged an non public, and might reasonably impact share prices either way, yes it is illegal. Not a lawyer, but your Buffet example above would be something I'd either run through compliance before traiding or I just wouldn't trade at all before said whatever he planned to say. Source: Countless of SOX-mandatory insider trading trainings and falling under rules covering restricted traiding wi…
> If your knowledge is privileged an non public, and might reasonably impact share prices either way, yes it is illegal.
Unless you’re in the US Congress as there is an exception for their legislative insider info.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#34OMG gimme a break, isn't crypto itself a huge insider-trading sort of market? Why is this such a big deal for Coinbase unless there are other intentions behind this arrest?
Yes. Crypto isn't a new technology it's unregulated finance.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#35Earlier quoted context omitted.
I mean one of the dudes was flying to india. 750k is probably enough to buy some rural property there and live the rest of your life off interest. The less money, the less radar signature.
He goofed. Should have left the country far before. And was found out only after a random twitter account did correlations How much more crypto employees are getting away with it?
> Should have left the country far before.
People just don’t quit while ahead. They are confident that they are smart enough to keep their scheme going just a little bit longer. I mean 750K is almost good enough to retire in India and work as a freelancer or something. But no, they need a bigger house, bigger cars and what not.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#36Wow, 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…
I wonder if the Tweet Account was fed info from someone in the accused's circle who didn't get their cut.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#37Hmm. Is this actually "insider" knowledge? I personally question the validity of this charge. This employee had knowledge of what COINBASE was going to do with the currency (ie, list it). He had no fiduciary responsibility as pertaining to the coin itself. This is like knowing that Warren Buffer is going to say good thing about Microsoft tomorrow, and buying it today as a result (expecting it to rise). Is that actual…
It's not confirmed to be illegal until they get a conviction. So we will find out! It will be an interesting case. I'd wager they do get convicted but we'll see.
There are two seperate questions:
1) Do the alledged facts meet the legal requirements for the crimes charged?
2) Are the alledged facts true?
A trial is focused on question 2. A jury is called on to make a determination of the facts of the case, they will be instructed on what is/isn't illegal and not expected to make any decision regarding questions of law.
Question 1 can be answered in summary judgment before you ever call a jury.
Question 1 can also be answered through the appeals process long after a guilty verdict is given.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#38Note that they were charged for wire fraud and wire fraud conspiracy. So not for actual Section 10(b) violations, aka insider trading.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#39I'm surprised they were table to track the laundering, given it sounds like they used a lot of different wallets.
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.
And there is the issue that what is inefficient today may become efficient tomorrow. The blockchain will be there waiting for new forensic techniques.
Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme
#40Unpopular opinion incoming: the concept of insider trading is stupid, and even more stupid applied to cryptocurrency. People will always find ways to profit from privileged information. The least careful ones will just keep getting caught while the most careful reap the rewards and get away with it. Cryptocurrency isn't even a regulated asset, how can someone be 'insider trading' it?
What insider trading really means is a middle class person profiting in a way the ruling class don't like. Apparently it's legal for Congress to insider trade. It's legal for CEOs to insider trade.