Coinbase Faces Fresh Bitcoin Cash Insider Trading Lawsuit Following Initial Rejection
The fallout from Coinbase’s December 2017 Bitcoin Cash release continues with a fresh lawsuit suing for damages.
As Cointelegraph reported, District Judge Vince Chhabria threw out Berk’s claims due to the failure to “describe the scope or content of Coinbase’s duty.”
Now, an amended version of the lawsuit focuses on the exchange purportedly falling foul of its own listing rules.
“The sudden launch (of BCH) was effectively part of an attack by Coinbase and (CEO Brian Armstrong) to depress the price of BTC and to inflate the price of BCH, to encourage more transactions and greater profitability for Coinbase,” the new filing reads.
Coinbase must respond by Dec. 20 prior to the initial hearing in January.
In September, Chhabria claimed Coinbase had “bungled” the BCH rollout but was already considering throwing out Berk’s lawsuit with leave to amend.
The company had conducted an internal investigation into insider trading, concluding in July that no such activity had taken place.
The latest accusations add to the stack of negative publicity BCH is also facing after its contentious hard fork Nov. 15 sparked major market volatility and a chain split.