Cryptocurrency News Today: Coinbase faces negligence suit after mishandling its launch of Bitcoin Cash
However, court documents released on Tuesday show that US District Judge Vince Chhabria threw fraud and unfair competition charges relating to the case.
Bitcoin Cash was borne out of a Bitcoin fork in 2017 and then split off into two subsequent cryptocurrencies, Bitcoin Cash (BCH) and Bitcoin Cash SV, the following year.
This move marks the latest advance in a protracted lawsuit filed by Jeffery Berk in the aftermath of BCH’s launch.
The issue resides around the fact that Coinbase allowed US dollar orders for BCH, but suspended them after just a couple of minutes, citing “significant volatility”. As a result, prices jumped in the hours before the Cryptocurrency was added to the exchange. It prompted market observers to claim this was evidence of potential insider trading.
“The fact that Coinbase halted trading within three minutes of the launch is indicative of dysfunction,” the judge said.
“The buyers have also identified precautions Coinbase could have taken to avert the massive spike in the price of Bitcoin Ca