Cryptocurrency exchange Coinbase is accused of premature disclosure of confidential information

Three financial researchers from the University of Technology in Sydney, Australia, claim that insider trading is «systemic» in the cryptocurrency industry. The researchers estimate that such activity has occurred on 25% of Coinbase listings over the past four years.

In a yet-to-be-peer-reviewed article titled «Insider Trading in Cryptocurrency Markets,» professors Esther Felez Vinas, Talis Putnins, and Luke Johnson, PhD, report that insider trading has occurred on 10−25% of cryptocurrency listings on the Coinbase exchange in San Francisco. The researchers claim that this allowed the exchange to illegally earn more than $ 1.5 million. «Our findings point to cases that have yet to be prosecuted,» they wrote.

By the way, this is not the first time Coinbase has faced insider trading accusations. The US Department of Justice recently indicted former Coinbase product manager Ishaan Wahi. Authorities claim that Wahi shared Coinbase asset listing announcements with two other criminals in advance as part of a scheme that brought them more than $ 1.1 million in profits.

In turn, the crypto exchange stated that it has «zero tolerance for this kind of illegal behavior and will not hesitate to take action against any employee if it finds violations.»

«We are working hard to ensure that all market participants have access to the same information. We have zero tolerance for illegal behavior and will follow up on it, conducting investigations if necessary,» said a Coinbase spokesperson.