ALLEGED INSIDER TRADING OF BITCOIN CASH ON COINBASE IS NON-CRIME, SAYS VER

The volatile world of cryptocurrency is no stranger to controversy, and one particular incident involving the listing of Bitcoin Cash (BCH) on Coinbase has sparked heated debate.At the center of this discussion is Roger Ver, CEO of Bitcoin.com and a prominent advocate for Bitcoin Cash. I think insider trading is a non-crime, he told viewers. Ver was specifically responding to a question about whether or not the alleged insider trading Ver was specifically responding to a question about whether or not the alleged insider trading is a sign that crypto exchanges need moreVer has publicly stated that the alleged insider trading surrounding the BCH listing on Coinbase is a ""non-crime"" and shouldn't lead to increased regulation of crypto exchanges. Ver responded that he believes crypto insider trading is a non-crime. As Bitcoin Cash was being added to GDAX, the cryptocurrency exchange that is affiliated with Coinbase, the price of Bitcoin Cash on GDAX jumped to $9,500, while still being offered at roughly $3,100 across other exchanges.This controversial viewpoint has ignited discussions about ethics, legality, and the need for regulatory oversight in the rapidly evolving cryptocurrency landscape. Reports indicate that some Coinbase employees had used their knowledge of upcoming coin listings to profit from the surge in prices of coins.The original incident saw the price of Bitcoin Cash skyrocket on GDAX (Coinbase's exchange) upon its addition, while remaining relatively stable on other exchanges.This price disparity fueled accusations of insider trading, suggesting that individuals with prior knowledge of the listing may have profited unfairly. The SEC suit alleged former Coinbase product manager Ishan Wahi and his brother used non-public knowledge to trade digital asset securities. Former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi have agreed to settle charges of insider trading brought against them by the United States Securities and Exchange Commission (SEC), the agency announced on May 30. The SEC has filed aBut does this constitute a crime? And in fact, Ver now seems to have become more of an advocate of Bitcoin Cash, created in August 2025. Ver has also gone so far as to suggest that alleged insider trading of Bitcoin Cash on theAnd what are the implications for the future of crypto regulation? Bitcoin.com owner and Bitcoin Cash (BCash) proponent Roger Ver has described Coinbase s insider trading scandal as a non-crime.This article delves into the details of the Coinbase Bitcoin Cash controversy, exploring Roger Ver's perspective, the legal ramifications of insider trading in crypto, and the ongoing debate surrounding the need for greater regulatory clarity.

The Coinbase Bitcoin Cash Listing and Insider Trading Allegations

In 2017, the cryptocurrency exchange Coinbase announced that it would be adding Bitcoin Cash (BCH) to its platform. Bitcoin.com CEO Roger Ver tells CNBC that alleged insider trading of BCH on Coinbase - if it did take place - is actually not such a bad thing.This announcement was met with considerable anticipation within the crypto community, as Coinbase was (and still is) one of the most popular and reputable exchanges. Roger Ver, CEO and co-founder of Bitcoin.com, vocally defended Coinbase with regard to recent allegations of suspected insider trading conducted by members of the exchange s staff. Ver appeared on CNBC on Wednesday in an interview with Melissa Lee on the network s show Fast Money. Addressing the ordeal surrounding the addition of Bitcoin Cash to Coinbase, Lee askedHowever, the listing itself was far from smooth. A gerente de marketing da rede, Gaby Wasensteiner, casada com um executivo ativo do Bitcoin Cash, que foi fotografado com Ver. Em meio a acusa es nas redes sociais da CNBC promovendo ativamente o Bitcoin Cash, Wasensteiner retuitou a postagem de seu marido sobre um encontro de Bitcoin Cash que ele estava querendo criar em Londres.As Bitcoin Cash was being added to GDAX, the associated cryptocurrency exchange linked to Coinbase, the price of Bitcoin Cash on GDAX experienced a dramatic surge.It jumped to a staggering $9,500, while simultaneously being offered at approximately $3,100 on other exchanges.This significant price disparity raised immediate red flags.

The rapid and unusual price movement prompted immediate speculation about potential insider trading.The core allegation was that individuals with prior knowledge of the impending Coinbase listing had purchased Bitcoin Cash in advance, anticipating the price increase that would follow the announcement. At the time, Roger Ver, who remains Bitcoin Cash s top proponent, described the act of insider trading as a non-crime. If a bunch of people had traded in advance, then the price wouldn t have been nearly as volatile, he said about the initial Coinbase launch.This would allow them to profit substantially from the price surge, at the expense of other traders.The alleged information leak prior to the public listing announcement is at the heart of the case. Ver became a strong supporter of Bitcoin Cash, created in August 2025. He even said that the alleged insider trading of Bitcoin Cash on Coinbase wasn t a crime. Net Worth and Philanthropy. Roger Ver is often listed among the Wealthiest People in Cryptocurrency, but it s hard to know his exact net worth since he runs a privateSuch acts would potentially provide unfair advantages to certain market participants and undermine the fairness and integrity of the market as a whole.

Coinbase's Response and Investigation

Coinbase swiftly responded to the allegations, acknowledging the concerns and announcing an internal investigation.In a public statement, the exchange emphasized its commitment to maintaining fair and transparent markets. Skip to main content Bitcoin Insider. MenuThey stated that any employee found to have leaked confidential company information would face immediate termination. The Coinbase Insider Trading controversy began when it was revealed that Coinbase employees had been given access to Bitcoin Cash (BCH) before it was officially listed on the platform. Shortly after its listing, the price of Bitcoin Cash experienced a significant surge, leading to suspicions of insider trading.Furthermore, Coinbase pledged to cooperate with any regulatory inquiries into the matter.Their response also included an updated digital asset framework designed to prevent similar incidents from occurring in the future.

Despite the internal investigation and public statements, the controversy surrounding the Bitcoin Cash listing and potential insider trading continued to simmer. Insider Trading Is a Non-Crime : Roger Ver Speaking with CNBC on Wednesday, the early cryptocurrency investor and entrepreneur once known as Bitcoin Jesus said that the answer to the allegations of insider trading is not asking the government to further regulate cryptocurrency exchanges.The lack of conclusive findings from Coinbase's investigation left many unanswered questions, and fueled further speculation about the extent of the alleged misconduct.

Roger Ver's Stance: Insider Trading as a ""Non-Crime""

Enter Roger Ver, a prominent figure in the cryptocurrency world and a strong advocate for Bitcoin Cash. The trading activity referenced in the April 12 tweet was the trading caused by RAMANI. Coinbase thereafter publicly replied on Twitter noting that it had already begun investigating the matter and a few weeks later stated in a public blog post that any Coinbase employee who leaked confidential company information would be immediatelyVer has consistently maintained that insider trading in the context of cryptocurrency is not a crime.He argues that traditional financial regulations should not automatically apply to the digital asset space, and that stricter regulations could stifle innovation and growth within the industry. The lawsuit alleges that insider trading activity by Coinbase employees artificially inflated the price of Bitcoin Cash, causing customers and the rest of the cryptocurrency market (who did notThis statement became a key point of discussion in the broader debate about cryptocurrency regulations and enforcement.

Ver first publicly expressed this view in an interview with CNBC, where he addressed the allegations surrounding the Bitcoin Cash listing on Coinbase. Bitcoin.com CEO Roger Ver has defended US exchange Coinbase s alleged insider trading, saying the practice is a non-crime and should not warrant increased regulation of crypto exchangesHe argued that if individuals had traded in advance of the listing, it may have actually dampened the price volatility of the event. Coinbase BCash Scandal: Ver Says Insider Trading A Non-Crime Coinbase BCash Scandal: Ver Says Insider Trading A Non-CrimeHis perspective, however, is not universally accepted, and it clashes with the SEC's position on digital assets and security regulations.The SEC has taken a strong stance against insider trading in the cryptocurrency sector, viewing it as a violation of securities laws.

The Rationale Behind Ver's Argument

To understand Ver's perspective, it's important to consider his broader philosophy regarding cryptocurrency and regulation.He believes that cryptocurrencies, by their nature, are decentralized and should be free from excessive government control.Ver fears that imposing strict regulations on crypto exchanges could stifle innovation and drive businesses to operate in less regulated jurisdictions.He believes that market participants should be free to trade and invest in cryptocurrencies without undue interference from regulatory bodies.

Furthermore, Ver argues that insider trading in the context of cryptocurrency is fundamentally different from insider trading in traditional financial markets.He contends that crypto markets are more transparent and accessible, and that the information asymmetry that exists in traditional markets is less pronounced in the crypto space. Roger Ver is one of the first Bitcoin evangelists. His positions for BTC earned him the pseudonym Bitcoin JesusTherefore, he believes that the harms associated with insider trading are less significant in the context of cryptocurrency.

Is Insider Trading in Cryptocurrency Illegal?The Legal Landscape

The question of whether insider trading in cryptocurrency is illegal is a complex one, and the answer is not always clear-cut.In the United States, the Securities and Exchange Commission (SEC) has taken the position that many cryptocurrencies are securities, and therefore subject to securities laws, including those prohibiting insider trading.The SEC's stance means that individuals who trade on material, non-public information about a cryptocurrency that is deemed a security could face legal consequences.

However, the legal landscape surrounding cryptocurrency regulation is still evolving.There is ongoing debate about which cryptocurrencies should be classified as securities, and which should be treated as commodities or currencies.This uncertainty creates challenges for regulators and market participants alike.

The SEC's Position on Cryptocurrency as Securities

The SEC has consistently argued that many cryptocurrencies, particularly those that were offered in initial coin offerings (ICOs), meet the definition of securities under U.S. law.The SEC applies the ""Howey Test"" to determine whether an asset qualifies as a security.The Howey Test, derived from a Supreme Court case, states that an investment contract exists when there is an investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.

If a cryptocurrency is deemed a security, it is subject to the same regulations as traditional securities, including the prohibition against insider trading.This means that individuals who possess material, non-public information about a cryptocurrency that is considered a security are prohibited from trading on that information for personal gain.

Challenges in Enforcing Insider Trading Laws in Crypto

Despite the SEC's efforts to regulate the cryptocurrency space, enforcing insider trading laws in this arena presents significant challenges.One of the main challenges is the decentralized nature of cryptocurrency markets.Many crypto exchanges operate outside of the United States, making it difficult for U.S. regulators to investigate and prosecute insider trading cases.

Another challenge is the anonymity associated with cryptocurrency transactions.It can be difficult to identify the individuals behind specific trades, making it challenging to gather evidence of insider trading.Furthermore, the rapidly evolving nature of the cryptocurrency space makes it difficult for regulators to keep up with new technologies and trading strategies.

The Case of Ishan Wahi and the Coinbase Insider Trading Charges

A significant example of the SEC's crackdown on insider trading in the crypto space involves Ishan Wahi, a former product manager at Coinbase.The SEC filed charges against Wahi, his brother Nikhil Wahi, and their friend Sameer Ramani, alleging that they engaged in insider trading in connection with Coinbase's listing announcements.The SEC alleged that Ishan Wahi shared confidential information about upcoming Coinbase listings with his brother and friend, who then used that information to trade ahead of the announcements, generating illicit profits.Ishan Wahi and his brother Nikhil have agreed to settle these charges, highlighting the severity of the allegations and the potential consequences of insider trading in the digital asset markets.

Details of the Alleged Insider Trading Scheme

According to the SEC's complaint, Ishan Wahi had access to confidential information about which cryptocurrencies Coinbase planned to list on its exchange.This information was considered highly valuable because the price of a cryptocurrency typically increases significantly after it is listed on a major exchange like Coinbase.The SEC alleged that Ishan Wahi shared this information with his brother Nikhil and their friend Sameer Ramani, who then used it to purchase the cryptocurrencies in advance of the listing announcements.

The SEC further alleged that Wahi, his brother, and his friend used various accounts to conceal their trading activity and avoid detection.They allegedly generated over $1.1 million in illicit profits through their insider trading scheme.This case serves as a clear signal that the SEC is closely monitoring the cryptocurrency markets and is willing to take action against individuals who engage in insider trading.

Arguments For and Against Regulation of Crypto Exchanges

The debate surrounding the regulation of crypto exchanges is multifaceted, with compelling arguments on both sides.Proponents of regulation argue that it is necessary to protect investors, prevent fraud, and ensure the stability of the financial system.Opponents of regulation argue that it could stifle innovation, drive businesses to operate in less regulated jurisdictions, and ultimately harm the cryptocurrency industry.

Arguments in Favor of Regulation

• Investor Protection: Regulations can help protect investors from fraud, manipulation, and other harmful practices.
• Market Integrity: Regulations can help ensure the integrity of cryptocurrency markets by promoting transparency and preventing insider trading.
• Financial Stability: Regulations can help prevent cryptocurrencies from being used for illicit purposes, such as money laundering and terrorist financing.
• Level Playing Field: Regulations can create a level playing field for all market participants, ensuring that everyone has the same opportunities and is subject to the same rules.

Arguments Against Regulation

• Stifled Innovation: Regulations could stifle innovation in the cryptocurrency space by making it more difficult for new businesses to enter the market and develop innovative products and services.
• Jurisdictional Arbitrage: Strict regulations could drive cryptocurrency businesses to operate in less regulated jurisdictions, making it more difficult for regulators to oversee the industry.
• Increased Costs: Regulations could increase the costs of operating a cryptocurrency exchange, potentially leading to higher fees for users.
• Unintended Consequences: Regulations could have unintended consequences that harm the cryptocurrency industry, such as reducing liquidity or discouraging institutional investment.

The Impact of Insider Trading on the Cryptocurrency Market

Insider trading, whether considered a crime or not in the eyes of some, can have a significant and detrimental impact on the cryptocurrency market.It erodes investor confidence, distorts market prices, and undermines the integrity of the entire ecosystem.When individuals with privileged information exploit their knowledge for personal gain, it creates an unfair playing field and discourages participation from legitimate investors.

Erosion of Investor Confidence

One of the most significant consequences of insider trading is the erosion of investor confidence.When investors believe that the market is rigged or that certain participants have an unfair advantage, they are less likely to invest their capital.This can lead to decreased trading volumes, lower liquidity, and ultimately, a less efficient and vibrant market.The perception of unfairness can drive away both retail and institutional investors, hindering the growth and development of the cryptocurrency industry.

Distortion of Market Prices

Insider trading can also distort market prices, leading to inaccurate valuations and inefficient resource allocation.When individuals with non-public information trade ahead of public announcements, they can artificially inflate or deflate the price of an asset, creating a false signal for other market participants.This can lead to misallocation of capital, as investors make decisions based on inaccurate information.The volatility caused by such actions can further destabilize the market and increase risk for all participants.

Undermining Market Integrity

Ultimately, insider trading undermines the integrity of the cryptocurrency market.A fair and transparent market is essential for fostering trust and encouraging participation.When insider trading occurs, it creates a perception of unfairness and corruption, which can damage the reputation of the entire industry.This can make it more difficult for legitimate businesses to operate, attract investment, and gain mainstream acceptance.

The Future of Cryptocurrency Regulation: Finding the Right Balance

The ongoing debate about cryptocurrency regulation highlights the need for a balanced approach that protects investors and ensures market integrity without stifling innovation.Finding the right balance is a complex challenge, as regulators must navigate the unique characteristics of the cryptocurrency space while addressing the legitimate concerns of market participants.

The Need for Clarity and Consistency

One of the most pressing needs in the cryptocurrency regulatory landscape is clarity and consistency.Regulators need to provide clear guidance on which cryptocurrencies should be classified as securities, and what rules apply to crypto exchanges and other market participants.This clarity will help businesses comply with the law and avoid inadvertently running afoul of regulations.Consistency across different jurisdictions is also important, as it will prevent regulatory arbitrage and ensure that the cryptocurrency industry operates on a level playing field.

Promoting Innovation and Responsible Growth

While regulation is necessary to protect investors and ensure market integrity, it is also important to promote innovation and responsible growth in the cryptocurrency industry.Regulators should avoid imposing overly burdensome regulations that could stifle innovation and drive businesses to operate in less regulated jurisdictions.Instead, they should focus on creating a regulatory framework that encourages innovation while addressing the most pressing risks.

International Cooperation

Given the global nature of the cryptocurrency industry, international cooperation is essential for effective regulation.Regulators from different countries need to work together to share information, coordinate enforcement actions, and develop consistent regulatory standards.This will help prevent regulatory arbitrage and ensure that the cryptocurrency industry operates on a level playing field worldwide.

Conclusion: Navigating the Complexities of Crypto Regulation

The controversy surrounding the alleged insider trading of Bitcoin Cash on Coinbase, and Roger Ver's assertion that it's a ""non-crime,"" highlights the complex and evolving nature of cryptocurrency regulation.While Ver's libertarian perspective emphasizes minimal government intervention and freedom of markets, the SEC's enforcement actions, particularly the Ishan Wahi case, demonstrate a commitment to applying traditional securities laws to the digital asset space.The central challenge lies in striking a balance between protecting investors and fostering innovation.Overly strict regulations could stifle the growth of the crypto industry, while a complete lack of regulation could expose investors to fraud and manipulation.As the cryptocurrency market continues to mature, finding this balance will be crucial for its long-term success and mainstream adoption.Ultimately, greater clarity and consistency in regulations are needed to provide a stable and predictable environment for businesses and investors alike.Investors are advised to perform exhaustive research and due diligence when interacting with the cryptocurrency market.