Coinbase Staff alleged to be involved in fake liquidity in Litecoin/Bitcoin trading pair

Ahead of its Nasdaq Listing Coinbase's first quarter revenue hits record $1.8B

In the course of investigation by CFTC, it was discovered that the Bitcoin and Litecoin trading pair was manipulated by a staff, between September and November, 2016, which caused false liquidity.

Vincent McGonagle, an acting director of Enforcement posited that:

Inaccurate, misleading, reporting false transaction information violates the integrity of digital asset pricing. However, the commission has shown that they will act to safeguard the integrity and transparency of such information, through this enforcement action.

There are myriads of former Coinbase executives, employees and other personnel cooperating with the CFTC investigation, according to a separate report by journalist WU Blochain.

It is important to mention that Coinbase is about to go public and with the current investigation and prosecution it may affect the company.

Also, there will be postponement of Coinbase being registered as a public company till April and the current prosecution may affect other cryptocurrency companies that may like to register their companies in Greater China and United States.

 

 

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