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Coinbase exchange has reportedly concluded that no insider trading of Bitcoin Cash (BCH) took place in December 2017, Fortune reports Tuesday, July 24.
Anonymous sources close to Coinbase told Fortune that the exchange and wallet service provider conducted a company-wide meeting last week to discuss the results of an internal investigation.
A Coinbase spokesperson revealed to Fortune that the “independent internal investigation” has been completed, and the company is “determined to take no disciplinary action,” following a months-long probe by two national law firms. A Coinbase representative told Fortune:
“We would not hesitate to terminate an employee or contractor and/or take appropriate legal action if evidence showed our policies were violated. We can report that the voluntary, independent internal investigation has come to a close, and we have determined to take no disciplinary action.”
Coinbase initially decided not to support the coin, but reversed the decision and announced that BCH would be listed on the platform by Jan. 1. Speculation over insider trading began on Dec. 19, when Coinbase listed Bitcoin Cash on its platform — almost a month ahead of schedule — as the BCH price surged over $3,000.
The event triggered accusations that Coinbase employees engaged in insider trading, with Twitter users saying that the exchange “clearly leaked” news over the launch of Bitcoin Cash.
In response to the outcry, the company’s CEO, Brian Armstrong, published a strongly worded blog post about its employee trading policy and warned Coinbase would terminate and commence legal action against anyone who broke it.
A class action lawsuit filed by Coinbase customers is ongoing, and seeks damage from the company for negligence and violating consumer protection laws. Lynda Grant, a lawyer representing the plaintiffs in the suit, told Fortunethe case is still in procedural stages.
Grant also said she believes the Commodity Futures Trading Commission is investigating Coinbase over the Bitcoin Cash trading, but did not provide further specifics. The CFTC did not respond to a request for comment about whether it is looking into the matter.
In March, Coinbase faced two federal class action lawsuits in two days, including one accusing employees of insider trading of BCH, and a second, alleging that Coinbase “kept” funds that its users sent via email, but which recipients never claimed.
On July 18, Coinbase reversed its previous statement that it received the SEC’s approval for listing securities tokens. The platform said that neither the SEC nor the Financial Industry Regulatory Authority (FINRA) approved Coinbase to act as a securities dealer, as had been previously reported.