Judge Vince Chhabria: Coinbase subject to negligence case
The US-based crypto trading platform Coinbase can face charges of negligence on its obligations regarding the launch of Bitcoin Cash trading back in 2017.
US District Judge Vince Chhabria in San Francisco stated that the case must cover protection of the users that bought overpriced BCH rather than those customers that failed to sell coins due to trading suspension. The Judge confirmed that the lawsuit must contain meaningful evidence that the platform violated its obligations regarding the maintenance of the market.
For reference, Coinbase launched trading of Bitcoin Cash in 2017, though had to suspend it just in few minutes after that due to substantial price volatility. That time, the price for BCH started soaring in several hours before the announcement on Coinbase, which gave grounds to suspect insider trading practices.
Judge Vince Chhabria decided that the fact that Coinbase had suspended trading might be considered as a confirmation of breaking normal market operation. Customers said that the exchange could announce the launch date in advance which could prevent prices from such fluctuations. This opinion was backed by the Judge, adding that the launch of bitcoin futures on CME a day before that was a booster of demand in the market.
Meanwhile, the court refused to satisfy complaints filed by the sellers who failed to get rid of the coins acquired at high prices. Moreover, Vince Chhabria took off the table charges against Coinbase ragarding fraud and unfair competition.
07 August, 2019 12:55
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