Coinbase Sued For Insider Trading As Regulators Ramp Up Their Crypto Crackdown

The most important cryptocurrency exchanges withinside the world, changed into hit with a lawsuit alleging insider buying and selling through a former worker. The lawsuit, filed withinside the United States District Court for the Northern District of California, claims that the previous worker used exclusive records to make the most of trades in Coinbase's virtual assets, in violation of the company's regulations and securities legal guidelines.

This is simply the ultra-modern in a chain of regulatory moves taken in opposition to the cryptocurrency enterprise in current months. Regulators round the sector were growing their scrutiny of the enterprise, as worries over fraud, marketplace manipulation, and cash laundering have grown.

In reaction to those worries, many governments were imposing stricter rules at the cryptocurrency enterprise. For example, withinside the United States, the Securities and Exchange Commission (SEC) has been cracking down on unregistered preliminary coin offerings (ICOs) and bringing enforcement moves in opposition to organizations that violate securities legal guidelines.