CoinBase investigating their employees and contractors for possible insider trading...

A quick follow up to my article yesterday posted here. CoinBase's CEO has announced they are launching an investigation into the activity that occured shortly before Bitcoin Cash went live on their platform.  In a blog post reading:

Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. 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.

But let's take a moment to accept how unlikely it is this will result in anything. 

The trades would have occurred on other exchanges, with no way for CoinBase to tell who made those purchases.  Even if a CoinBase employee leaked information, they're likely smart enough to tell a friend and not have done this trading from a personal account. 

Just delete any relevent text messages - and all evidence is gone.   I wouldn't advise getting your hopes up that this will lead to any action.

Author: Ross Davis
San Francisco News Desk