Coinbase Faces Fresh Bitcoin Cash Insider Trading Lawsuit Following Initial Rejection
The lawsuit, which Jeffery Berk filed initially this year to address alleged insider dealing of Bitcoin Cash (BCH) among Coinbase officials in 2017, failed to make it to trial in October.
As Cointelegraph stated, District Judge Vince Chhabria threw out Berk’s assets due to the failure to “describe the scope or content of Coinbase’s duty.”
Now, a modified version of the lawsuit aims at the exchange supposedly falling foul of its own listing rules.
“The sudden launch (of BCH) was effectively part of an attack by Coinbase and (CEO Brian Armstrong) to depress the price of BTC and to inflate the price of BCH, to encourage more transactions and greater profitability for Coinbase,” the new filing states.
Coinbase must answer by Dec. 20 prior to the initial inquiry in January.
In September, Chhabria admitted Coinbase had “bungled” the BCH rollout but was already deeming throwing out Berk’s lawsuit with leave to amend.
The company had directed an internal investigation into insider dealing, culminating in July that no such activity had taken place.
The recent accusations add to the stack of negativepublicity BCH is also confronting after its combative hardfork Nov. 15 sparked major market instability and a chain split.The impact of the altcoin’s divergence into two competingdigital currencies prevails, with one, Bitcoin Cash SV, fallingin value to as little as $32 Nov. 21 after a blockchain reorganization.