With several crypto detectives alleging that insider tradings made in the crypto sector were all connected to Coinbase, Brian Armstrong, the CEO stated that they would change their token listing practices. In a blog post made on Thursday, the CEO didn’t really confirm if there were any employees under Coinbase that had received any sort of disciplinary action or had been referred to any criminal charges as a response to receiving insider information. As mentioned by the CEO, the company had decided to change the listing process that the company used over the next couple of quarters. This would help them try and prevent sending of the om-chain data signal to watchful traders.
Brian Armstrong Talks About Insider Trading In Coinbase
Brian Armstrong also mentioned that there was always the chance that someone inside the company could leak information to outsiders that were engaging in any form of illicit activity. Nevertheless, the company has a zero-tolerance policy regarding this and carefully monitored it- along with conducting investigations where it seemed appropriate with law firms that were outside.
Interestingly, if any of the investigations reported that any employee employed by Coinbase had aided or abetted any form of nefarious activity, those employees could see themselves terminated from their jobs immediately.
According to Brian Armstrong, employees have been limited from trading crypto on the platforms of Coinbase by the company policies that monitor transactions. However, it was reported by Cointelegraph that there were some online sleuths that had alleged certain investors of having insider knowledge of which tokens Coinbase was actively considering listing in the second quarter of 2022.
Brian Armstrong finally maintained that although the crypto exchange couldn’t possibly catch every single insider trading operation being conducted, they would definitely aim to work with other firms and respond to any policy adjustments thus needed.
