BitRss.com latest World Crypto News

Search and discover the latest Cryptocurrency updated Stories in Categories

24-7 World Cryptocurrency News about Blockchain, Technology and much more, only from Top Leading Sources

Insider Trading is Rife in Crypto, Says New Report

Insider Trading is Rife in Crypto, Says New Report
An analysis by Argus, a firm that helps companies manage employee trading, reveals that several crypto investors benefit from inside information about when exchanges would lose tokens, according to a Wall Street Journal report.



The report , based on available public data, shows that several wallets show a pattern of buying tokens days before listing and selling them immediately after.



This practice appears prevalent on most major exchanges, including Binance, Coinbase, and FTX. Major exchanges listing a token are usually a temporary catalyst for its prices.



According to blockchain data, a wallet accumulated Gnosis coins worth $360,000 within six days in August. Binance announced that it’d list Gnosis on the seventh day, leading to the price rising to more than 7 times its average in the last seven days.



The wallet started selling 4 minutes after Binance announced the listing and liquidated everything in 24 hours. They made $500,000 from the sale, pocketing a profit of about $140,000. The analysis reveals that this isn’t the first time the wallet has done the same thing.



Argus discovered that 46 wallets bought $17.3 million worth of Cryptocurrencies just before they were listed on the three major exchanges. However, the identity of the owners remains unknown.



Although visible profits from the sale of the tokens were more than $1.7 million, the actual profits are likely higher. As the firm reported, many wallets moved a part of their stakes to exchanges instead of selling directly.



The analysis focused on the period between February 2021 and April 2022. It considered only wallets that showed a pattern of buying tokens before listing.



This analysis brings the topic of insider trading in crypto back to the forefront. R e gulators and observers have spoken continuously about how this practice puts retail investors at a disadvantage. But there hasn’t been enough action so far.



Binance, FTX Releases Statement



However, the exchanges listed in the analysis have denied the claim. They said their compliance policies prohibit employees from trading based on privileged information.



FTX and Binance also said they reviewed the analysis, and it didn’t violate their policies. 



A spokesperson for Binance reportedly said



There is a longstanding process in place, including internal systems, that our security team follows to investigate and hold those accountable that have engaged in this type of behavior, immediate termination being minimal repercussion.



This view was also rehashed by the FTX CEO, Sam Bankman-Fried who revealed that his firm explicitly bans its employees from trading tokens that would be listed.




Saw an article about insider trading. We have a zero-tolerance policy and hold ourselves to the highest standards. 3 investigators reviewed the wallets, none is associated with Binance employees. If you see anything suspicious email [email protected] 1/2 — CZ 
</div>
	
<style>
.video-container { position: relative; padding-bottom: 56.25%; padding-top: 30px; height: 0; overflow: hidden; }
.video-container iframe, .video-container object, .video-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }
</style>
<script src=
BitRss.com shares this Contents always with License.

Thank you for Share!

   
Tumblr
LinkedIn
Reddit
VK

WhatsApp
Telegram

Cool to know huh? Read the full Article

Read the full Article:  ⭲ Insider Trading is Rife in Crypto, Says New Report


Search about Crypto News


BITRSS | CRYPTOCURRENCY WORLD NEWS

The latest Top News, only from Leading exponents of BlockChain, Bitcoin and different Accredited Crypto Currency Sources.

Since 2015, our Mission was to Share, up-to-date, those News and Information we believe to represent in an Ethical and sincere manner the current Crypto Currencies World: everything you are looking for, in one place!

We have always tried to give priority to the News; for this reason we have designed BitRss.com simple and intuitive, usable by all Devices, fast and effective.


| LEARN MORE ABOUT |

Today Most Popular News



SneakPeek Script
Setup, Upload and Go!