Former Coinbase PM charged in cryptocurrency insider trading tipping scheme

Post by c7DJTLrn » Thu, Jul 21, 2022, 4:35 PM UTC

mtoner23 wrote: post #78

c7DJTLrn wrote: post #40

Unpopular 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…

This is a psycho take. We banned insider trading. Allowing insider trading would obviously help the ruling class. CEOs cannot insider trade. And obviously we should just ban congress to trade stocks.

Post by mjburgess » Thu, Jul 21, 2022, 4:37 PM UTC

stingraycharles wrote: post #47

est31 wrote: post #38

Note that they were charged for wire fraud and wire fraud conspiracy. So not for actual Section 10(b) violations, aka insider trading.

This may sound like a dumb question, but as a foreigner, I have no idea what wire fraud actually means, but I hear it pretty often. The explanation I found “Mail fraud and wire fraud are terms used to describe the use of a physical or electronic mail system to defraud another” doesn’t really help me further, other than it just being “fraud”. What would be the difference between insider trading and fraud, in this spec…

Post by Ave » Thu, Jul 21, 2022, 4:38 PM UTC

biggc wrote: post #24

Didn’t a handful of Coinbase employees make out like bandits before Ethereum was listed? What’s changed since then?

Post by toolz » Thu, Jul 21, 2022, 4:39 PM UTC

gizmo686 wrote: post #37

modeless wrote: post #13

Earlier quoted context omitted.

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…

Post by admn2 » Thu, Jul 21, 2022, 4:40 PM UTC

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…