Skip to main content
  1. Home
  2. Computing
  3. News

CEO suspects foul play after bitcoin cash value soars prior to Coinbase trading

Kevin Parrish
By

Bitcoin Cash
Image used with permission by copyright holder
Coinbase co-founder and CEO Brian Armstrong said on Wednesday, December 20, that the company will conduct a full investigation into the inflated price of bitcoin cash (BCH). The digital currency’s value increased on other markets prior to Coinbase’s announcement to offer the new Bitcoin variant. Armstrong said all employees and contractors found responsible for inflating the value will find themselves unemployed and facing legal action.

Coinbase is a digital currency exchange located in San Francisco. Launched in 2012, the company provides a secure online platform for buying, selling, and trading digital currencies including bitcoin, ethereum, and litecoin. The company opened its doors to bitcoin cash trading on Tuesday, December 19, but the currency’s skyrocketing pre-Coinbase launch value indicated that someone related to the online exchange spilled the beans early to make a profit.

Recommended Videos

“The policy prohibits employees and contractors from trading on ‘material non-public information,’ such as when a new asset will be added to our platform,” he said. “In addition to trading restrictions, it prohibits communication of material non-public information outside the company. This includes to friends and family.”

For an entire month, all Coinbase employees and contractors knew about the impending bitcoin cash launch. All parties with knowledge of the event were prohibited from disclosing the information, and from trading bitcoin cash. By last Friday, Armstrong had conducted Q&A sessions and distributed emails regarding the dos and don’ts prior to the bitcoin cash announcement.

Bitcoin cash is an “improved” version of bitcoin that emerged in August. It’s a peer-to-peer platform for delivering money that is fully decentralized, meaning no banks or third parties are involved. What makes it different than bitcoin is that it has “upgraded consensus rules,” enabling the digital currency to “grow and scale.” Due to its technological roots, bitcoin simply stopped growing, thus bitcoin cash was born.

Coinbase pulled the plug just four minutes after opening its doors to bitcoin cash trading due to inflated values spotted on other markets. According to reports, a single bitcoin cash coin was valued at $3,500 when Coinbase opened trading, but had already skyrocketed to $8,500 per coin once Coinbase suspended trading. Immediate speculation pointed to software glitches, but the timing of the inflation indicates a possible information leak.

“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter,” Armstrong added. “Our goal is to make Coinbase the most trusted and easiest to use digital currency exchange. We will only accomplish this goal by ensuring that we (the employees and contractors at Coinbase) all hold ourselves to a high standard of conduct.”

Coinbase re-opened trading at 9 a.m. PT on Wednesday for exactly one hour to “establish liquidity.” By 11 a.m., the company re-opened trading and said it would halt the service if “significant volatility” is observed.

Topics
Kevin Parrish
Kevin Parrish
Former Digital Trends Contributor
Kevin started taking PCs apart in the 90s when Quake was on the way and his PC lacked the required components. Since then…
Outfit your office with new business desktops while they’re $500 off
The Dell OptiPlex Micro Form Factor at a side angle on a white background.

Some of the best desktop computer deals at the moment come, predictably, from Dell. In particular, if you're in need of new business desktops for your office, you're in luck. Today, you can buy the Dell OptiPlex Micro Form Factor for $969 saving you $520 off the regular price of $1,489. Ideally suited for business use with some excellent specs, we're here to look in more detail at what it offers while it's down to this great price. Alternatively, just tap the buy button to get straight onto buying it.

Why you should buy the Dell OptiPlex Micro Form Factor
Dell makes some of the best desktop computers out there, and that certainly extends to its business range. The Dell OptiPlex Micro Form Factor has a 13th-generation Intel Core i5 processor, along with 16GB of memory and 512GB of SSD storage. It also comes with Windows 11 Pro preinstalled and a highly capable Wi-Fi 6E wireless LAN card to ensure you won't have to worry about connection dropouts.

Read more
Best monitor deals: Gaming, office, curved, OLED and more
Dell UltraSharp 27 4K PremierColor Monitor

If you’ve recently purchased a new desktop PC, you’re going to need to get yourself a new monitor as well. Monitors are a good way to land some savings, as even the best monitors often see a discount. There’s a lot to consider when shopping for a new monitor, from resolutions to refresh rates. Screen size is also something to factor in, particularly if you’re looking for a monitor to pair with one of the best laptops. We’ve rounded up everything you need to know about how to save on a new monitor, as well as some information to help you decide which is right for you. So whether you’re looking to get a new digital window for your PC or expand your laptop’s screen real estate, these are the best monitor deals out there right now.
Dell SE2422H 24-inch monitor — $100, was $150

A simple, affordable option for getting some screen real estate onto your desk is this Dell 24-inch monitor. It’s well designed, sturdy, and compact, which makes it great for smaller desks and spaces. It comes in with Full HD resolution, a 75Hz refresh rate, and easy connectivity with an HDMI port and included HDMI cable. It also features AMD FreeSync technology, making it an affording option for gamers as well.

Read more
This HP Pavilion laptop dropped from $1,000 to $580 for a limited time
The HP Pavilion 15t-eg300 laptop against a white background.

The HP Pavilion 15t, a dependable device that's perfect for the demanding activities of work or school, is currently available from HP laptop deals with a $420 discount that pulls its price down to just $580 from $1,000 originally. This powerful machine won't stay this cheap for long though, so if you think this is what you need as your daily companion, there should be no hesitation on your purchase. If you delay the transaction to tomorrow, the laptop's price may already be back to normal.

Why you should buy the HP Pavilion 15t laptop
The HP Pavilion 15t will be able to match the performance of some of the best laptops with its 13th-generation Intel Core i7 processor and integrated Intel Iris Xe Graphics. It's also powered by 16GB of RAM, which is recommended by our laptop buying guide if you're going to be running demanding apps or engaging in any kind of content creation. The device ships with Windows 11 Home pre-loaded, for an operating system that's familiar to most people, and it comes with a 256GB SSD, which should provide ample storage space for your important files.

Read more