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Coinbase investigates possible insider trading

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After sharp rise in Bitcoin cash

One of the world’s largest cryptocurrency trading platforms, Coinbase, today said it will investigate accusations of insider trading, following a sharp increase in the price of bitcoin cash hours before it announced support for the virtual currency.

Coinbase chief executive Brian Armstrong said: “If we find evidence of any employee or contractor violating our policies, directly or indirectly, I will not hesitate to terminate the employee immediately and take appropriate legal action.”

Prices for the cryptocurrency Bitcoin Cash soared and then collapsed when Coinbase suddenly announced it would allow it to be traded on its platform, then pulled the plug just four minutes after trading started.

Bitcoin cash jumped to $8,500 on Coinbase’s exchange yesterday afternoon.

Trading in bitcoin cash will be suspended until 1200 ET (1700 GMT) today, a Coinbase status page showed.In a blogpost, Coinbase said it suspended trading in Bitcoin Cash because of significant volatility.

Meanwhile, Bitcoin valuation fell more than 10 per cent today to a one-week low of $15,800.




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