Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

Post by [deleted] » Thu, Jul 21, 2022, 10:19 PM UTC

game-of-throws wrote: post #326

tyre wrote: post #323

Earlier quoted context omitted.

For some nuance, though, partly this has to do with lack of SEC enforcement on crypto as a security. My opinion then would have been that this should be insider trading, crypto should be classified as a security, and also that I wasn’t sure the SEC would classify this as insider trading. Since the definition of insider trading is kind of, “whatever the SEC enforces”, it’s possible to believe that this is a security t…

Yeah I was about to say something similar. Our existing insider trading laws don't quite fit this situation, which is why they're being charged with "wire fraud conspiracy" instead of something more specific.

Post by jmoak3 » Thu, Jul 21, 2022, 10:28 PM UTC

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.

Post by siftrics » Thu, Jul 21, 2022, 10:34 PM UTC

munificent wrote: post #295

siftrics wrote: post #239

Earlier quoted context omitted.

It literally does the opposite. It pushes the price in the direction it's going to go when the information is made public.

You're only thinking of the first-order effect. If insider trading is allowed then, yes, those who have access to inside information can trade on it more efficiently. But it also highly incentivizes market participants to hide information . In a world where insider trading is allowed, anyone who has access to inside information can now personally monetize it as long as that information does not get out to the wider m…

Post by rglover » Thu, Jul 21, 2022, 10:37 PM UTC

paulpauper wrote: post #246

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…

It's amazing how they already had tabs on this guy and just waited for him to leave but without arresting him sooner if you think you broke the law and want to avoid arrest, stay away from the airport. anyone who buys a ticket they get your full info and then the arrest is as easy as picking you up at the gate, nowhere to hide.

Post by lebed2045 » Thu, Jul 21, 2022, 10:55 PM UTC

codegeek wrote: post #249

walrus01 wrote: post #234

Earlier quoted context omitted.

I would rate the chances of an Indian (or Pakistani, or Bangladeshi) national being able to evade capture domestically in their home country in south asia as quite high. In either country you can exist entirely in a cash-based economy with no digital records of your actual identity linked to any transactions or accounts if you put a bit of effort and thought into it. Unless the fugitive was high enough profile that i…

"cash-based economy with no digital records of your actual identity linked to any transactions or accounts" Not that easy in India anymore for last few years with thinks like Aadhar/PAN card and almost every bank requiring those. Even small time vendors prefer payment using phone apps these days in India.