The Coinbase Bitcoin exchange is suspected of having carried out a not inconsiderable proportion of their trades within the staff. Now, a stock exchange official told the New York Procuratorate to clarify the matter.
Coinbase, a stock exchange on which Bitcoin and other crypto currencies can be traded, is suspected of performing trades in its own interest. Because a report from the New York prosecutor's office reveals that 20 percent of the trading volume are activities that went out of employees of the stock exchange. This now denied the allegations.
The argument revolves around an excerpt from a report for which the stock exchange has voluntarily provided data. It says:
"Coinbase [hereby] discloses that nearly 20 percent of the executed volume on its platform can be attributed to its own trading."
Apparently, the prosecutor had confused the terms "own trading" and "proprietary trading". In the latter case, banking is the purchase or sale of goods (or securities) executed on its own account.
This ultimately led the prosecutor to doubt the credibility of the crypto exchange. Therefore, the Attorney General said:
"Such high levels of proprietary trading raise significant questions about the risks that consumers are taking on such platforms."
To clarify this misunderstanding, the Coinbase CPO responded promptly. Mike Lempres then states in a blog post:
"Coinbase is not acting for the benefit of the company in terms of proprietary trading. To provide an easy-to-use user experience, our users can specify a price and quickly complete the order on our Exchange platform. This benefits from the high liquidity of the Coinbase ecosystem. "
In other words, according to Chief Policy Officer Lempres, the allegations are merely the result of conceptual confusion. Instead of trading for their own benefit, the crypto exchange only provides its customers with the necessary funds. Therefore, Lempres emphasizes:
"When Coinbase trades, it does so for Coinbase's clients, not for itself."
Wikileaks' Julian Assange boycotted the US crypt market Coinbase . The Disclosure Platform was removed as a customer without notice and without giving reasons. Previously, the products of the Wikileaks shop could be paid for using various cryptocurrencies. Also donations in crypto form were possible. But Coinbase is currently under fire for other reasons. Recently, no fewer than 115 claims were filed for attempted fraud by their own customers.
Observers speculate that the decision could be justified by the fact that Coinbase is currently seeking a broker license. Therefore, the termination without notice seems like anticipatory obedience. Probably you do not want to mess with the authorities rather and Wikileaks has therefore removed as a precaution. A more detailed explanation of why Julian Assange & Co. was thrown out was owed to the activists. Years ago, organizations such as Amazon, PayPal, Visa, MasterCard, or Bank of America terminated the collaboration after the first major revelations. The well-known in the crypto community lawyer Andreas M. Antonopoulos believesthat the story is repeating right now. What the credit card providers, web hosts and banks did in 2010 is now done by Coinbase. Then as now, the measure hits the disclosure platform very hard. Because many do not want to be able to follow the path of their donations, the use of cryptocurrencies is very important.
From a temporal point of view, the lawsuit of the Democrats in the Federal Supreme Court of the USA is also fitting. Assange & Co. is accused of campaigning in favor of Donald Trump. The lawsuit alleges that Russian hackers have invaded the Democratic Party network in 2015 and 2016. The data copied was sensitive. They were later published by Wikileaks to decisively weaken Hillary Clinton, candidate of the Democrats.
Coinbase under attack: 115 lawsuits for fraud
The operators of Coinbase are currently not only struggling with insider trading. US media reports 115 lawsuits filed by former Coinbase users alleging that they have used their credit, The commissioned lawyers have therefore already informed the Securities and Exchange Commission SEC and other US authorities. Users describe in the complaints their problems with the provider, which made the contents of their wallets disappear easily. On their support request, they were always put off. Seven times in a row you have told a customer that you are taking care of the matter, but nothing has happened yet. Another user complains that they have deliberately locked him out in order to rob him of his assets. A Coinbase spokesman told Mashable that the growing popularity of cryptocurrencies leads to significant additional work on processing the requests of its 20 million customers. Accordingly, unfortunately it would also come to unwanted long-term delays. Coinbase has meanwhile announced a number of new products. Critics suggest that more attention should be paid to clarifying and solving growing problems rather than introducing new services.