Crypto Controversy: Roger Ver Defends Coinbase’s Alleged Insider Trading

The Non-Crime Debate

In the wild west of cryptocurrency, where regulations are as scarce as a reliable WiFi signal at a coffee shop, Bitcoin.com CEO Roger Ver recently stirred the pot by labeling insider trading a “non-crime.” In a candid interview with CNBC, Ver jumped into the fray, defending Coinbase amid investigations into its trading practices during the launch of Bitcoin Cash.

Crypto Exchanges and Regulation: A Hot Topic

The central question of whether the alleged insider trading at Coinbase signifies a need for more regulatory oversight was swiftly dismissed by Ver. He argues that it’s the investor’s responsibility, not regulators’, to be smart about where they park their financial assets. His words echo a familiar tune: “Buyer beware” is the mantra for anyone dabbling in digital currencies.

Insider Trading or Smart Trading?

Ver took an interesting angle by suggesting that trading based on insider knowledge could have a flip side: it might actually stabilize prices. For instance, when Bitcoin Cash hit a staggering $9,000 on GDAX before settling down to a more manageable $3,700, one could argue that informed trades helped alleviate sudden price shocks.

The Ripple Effect: Tone Vays Weighs In

As news of the alleged insider trading spread like wildfire, Bitcoin analyst Tone Vays offered his two cents. He linked to a Reddit thread where a user suggested prior knowledge of Bitcoin Cash’s arrival at Coinbase. While the comment was quickly deleted, it left the door wide open for accusations of foul play and added fuel to an already raging fire surrounding Coinbase.

Coinbase’s Response: Policy in Place

In the midst of this storm, Coinbase’s CEO Brian Armstrong issued a blog post detailing the company’s employee trading policy. He promised swift action if any wrongdoing is uncovered, stating, “I will not hesitate to terminate the employee immediately and take appropriate legal action.” This ensures that while insider trading may be seen as a gray area, Coinbase is keen on maintaining a degree of integrity.