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Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

justice.gov

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Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#311

Post by SilasX »

paulpauper wrote: post #255
SilasX wrote: post #213

Earlier quoted context omitted.

Haha, and the first reply to that tweet is complaining that the SEC is ignoring this while shackling another Coinbase venture. That didn't age well! https://twitter.com/ChainLinkGod/status/1513926481486909442 Edit: Quoting in case it gets deleted: >>While the SEC was very swift in shutting down Coinbase Lend for DARING to provide 4% yield >>They’ll do absolutely nothing about this situation because they are a corrupt…

it goes to show how the gov. takes this sort of crime seriously, contrary to the popular belief that the SEC is ignoring insider trading. if the pieces are there, they will take action.

To my discredit, I was one of those people. I stand corrected.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#312

Post by skylabmelody »

jmoak3 wrote: post #238
lawn wrote: post #126

Earlier quoted context omitted.

Or how about Litecoin's creator who worked for Coinbase and lobbied for Litecoin to get added to the exchange?

Yup! https://bitfinexed.medium.com/coinbase-insider-trading-litec...

Why you keep spamming that link here? That twitter thread is built on a layer of conjectures with nothing tangible.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#313

Post by victorvosk »

zionic wrote: post #76
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…

Wow, not that I would ever do anything like this… but if I was accused of such a thing the last thing I would do is book a flight for tomorrow .

From his perspective he could have believed it was just coinbase connecting the dots and he was just going to leave since they, if alone in their investigation, effectively had no immediate power over him.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#314

Post by SilasX »

ChainOfFools wrote: post #107
pjc50 wrote: post #90

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.

Say what? The whole DeFi ecosystem basically exists to bring transparency to operations like exchanges. With e.g. liquidity pools, you can see exactly what trades it's processing and how it handles them.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#315

Post by jmoak3 »

skylabmelody wrote: post #312
jmoak3 wrote: post #238

Earlier quoted context omitted.

Yup! https://bitfinexed.medium.com/coinbase-insider-trading-litec...

Why you keep spamming that link here? That twitter thread is built on a layer of conjectures with nothing tangible.

I thought it was a good summary, and that people should see it.

Have you read the CFTC's fines for Coinbase's wash trading between Litecoin/Bitcoin in 2016 to pump up volume?

https://www.cftc.gov/PressRoom/PressReleases/8369-21

From the fine:

>a former Coinbase employee used a manipulative or deceptive device by intentionally placing buy and sell orders in the Litecoin/Bitcoin trading pair on GDAX that matched each other as wash trades. This created the misleading appearance of liquidity and trading interest in Litecoin. Coinbase is therefore found to be vicariously liable as a principal for this employee’s conduct.

I wouldn't be surprised if Jeff here is correct in his guess of who did this: https://twitter.com/jeffjohnroberts/status/13730545911604838...

>According to the order, between January 2015 and September 2018, Coinbase recklessly delivered false, misleading, or inaccurate reports concerning transactions in digital assets, including Bitcoin, on the GDAX electronic trading platform it operated. During this period, Coinbase operated two automated trading programs, Hedger and Replicator, which generated orders that at times matched with one another. The GDAX Trading Rules specifically disclosed that Coinbase was trading on GDAX, but failed to disclose that Coinbase was operating more than one trading program and trading through multiple accounts.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#316

Post by rory »

profmonocle wrote: post #301
smsm42 wrote: post #283

Earlier quoted context omitted.

They probably have computers on the outgoing checkpoint too. Maybe walk across Rio Grande or something. Or just go to Florida and swim for a really long time.

> They probably have computers on the outgoing checkpoint too. Does the US have outgoing checkpoints on its land borders? I thought you only dealt with the Canadian/Mexican customs agents on your way out, and only dealt with US CBP on your way back in. (I haven't crossed a US land border since a road trip to Canada when I was a kid, so I could be very wrong.)

I've crossed three land borders to Canada in the past few years and none had an outgoing checkpoint.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#317

Post by wmf »

hackernewds wrote: post #309
cuteboy19 wrote: post #258

Earlier quoted context omitted.

The person was lazy. There are many ways to obfuscate this even when the ledger is public

How would one do this? you're right in that, the illusion of transparency actually gives the sophisticated players cover.

If he used different wallets to buy different coins then the correlation might not have been noticed. Buying coins right before they're listed on Coinbase is still suspicious but it would have been less suspicious at least.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#318

Post by jqpabc123 »

jmoak3 wrote: post #236

This is nothing new for Coinbase employees: https://bitfinexed.medium.com/coinbase-insider-trading-litec... I recommend caution to crypto engineers - the world loves you when you make people rich, and the world might be willing to excuse shady behavior for a brief time. When things sour shady people will get what they deserve, and the metaphorical mob will come for their associates/companies.

I recommend caution to crypto engineers

Fraud is everywhere in crypto but it has very little to do with *crypto engineers*.

In other words, lots of *engineers* are bedazzled by blockchain but this isn't the source or the cause of most of the fraud. Blockchain is just an accounting system. As this example shows, there are lots of way to commit fraud outside of forging the books.

Re: Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

#320

Post by lowdest »

zionic wrote: post #76
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…

Wow, not that I would ever do anything like this… but if I was accused of such a thing the last thing I would do is book a flight for tomorrow .

If I've learned anything from reading espionage fiction novels -- you book a flight for tomorrow and leave on the bus tonight.
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