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Coinbase Under Investigation For 0X Listing

Coinbase is being scrutinized for contravening market laws in the cryptocurrency business.


 

Some market participants blamed Scalar Capital for using its association with Coinbase to list the 0x token. However, most individuals who have a stake in Scalar Capital were earlier shareholders.

Additionally, there is enough evidence to show that Linda Xie, the previous product administrator at Coinbase is related to 0x’s creator Will Warren. The latter husband to the former. Clifford also worked as a chief engineer at Coinbase and is now the current administrator at Scalar. This is a clear indication that the officials of the two entities used their influence to list 0x which is contrary to the law.

However, it was not clear whether Maksim Stepanenko worked at Coinbase as a consultant and Engineer. Some also say that he was among the task force that created DAF certificate for registering new cryptos. Additionally, DAF records show that he was a software engineer despite denying these allegations. Stepanenko removed his association with Scalar from his social media profiles.

Evidence Of Insider Trading In The Registration Of 0x

There is not sufficient evidence that shows whether Scalar Capital has an interest in 0x. Though, the latest investigations reveal that most Scalar members had investments in 0x. These latest developments show that there were incidences of insider trading in the market. Therefore, such actions might cause shareholders to lose confidence in the two companies in future.

The Block’s information refutes all allegations that link Scalar Investment with the registration of 0x. It additionally states Scalar Capital did not have any clandestine information when Coinbase listed 0x. Their response could not convince the market participants since there were indications of ouid-pro-quo in these transactions.

Coinbase was previously accused of engaging in illegal trading. The most recent occurence happened last year during Bitcoin Currency listing. This occurred when the prices of stocks increased drastically beyond expectations of many people. The price rose to $9,500 before witnessing a significant decline later.

Coinbase Bitcoin Currency Insider Trading Chart

Later, the AOG conducted their own research on the VMI report and realized that no exchange communicated in the report. Coinbase failed to explain why it listed a particular computer-generated asset without following the law. However, these listings were subjective. The AOG concluded that Coinbase never required frequent disclosure from every worker regarding their transaction history. Their shareholding in various assets was also not required.

In the future, the regulatory body should take disciplinary action against companies that engage in insider trading. The market watchdog can suspend their license for some time or fine them heavily. Officials that engage in this trade should be dismissed as a way of discouraging such actions.


8 months ago

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