Share this article
Coinbase Hit by Lawsuit Over Alleged Insider Trading
Cryptocurrency exchange Coinbase has been hit by a class action lawsuit over alleged insider trading during its launch of bitcoin cash trading.
By Wolfie Zhao
Updated Sep 13, 2021, 7:38 a.m. Published Mar 5, 2018, 12:00 p.m.
Make us preferred on Google
Cryptocurrency exchange Coinbase has been hit by a class action lawsuit over alleged insider trading during its launch of bitcoin cash.
According to a court document dated last Thursday, the case has been brought by Jeffery Berk, representing a group of investors that placed trading orders on Coinbase or its order book trading platform GDAX from Dec. 19–21, 2017.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Based on the complaint, the case takes aim at Coinbase's launch of trading in the same month, with the plaintiffs accusing the company of tipping off insiders ahead of the formal launch. As such, the group accuses the firm of negligence, and is seeking damages, the amount of which will be decided at trial.
As previously reported, San Francisco-based Coinbase first announced in August that it would support bitcoin cash – a new crypto asset that was forked from the bitcoin blockchain in November. At the time, the exchange said the new service would go live by Jan. 1, after which investors would be able to withdraw bitcoin cash.
When Coinbase launched BCH trading on Dec. 20, BCH prices spiked just prior to the announcement and accusations soon appeared on social media suggesting that employees of the firm might have tipped off others in advance. The company responded to the claims by announcing it would conduct an investigation into whether any staff members may have violated its insider trading rules.
However, the plaintiffs allege that the firm has never revealed the full results of its investigation and that it has violated California’s Unfair Competition Law.
The complaint states:
"When Coinbase’s customers’ trades were finally executed, it was only after the insiders had driven up the price of BCH, and thus the remaining bitcoin customers only received their BCH at artificially inflated prices that had been manipulated well beyond the fair market value of BCH at that time."
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
Court gavel image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
