Litecoin founder Charlie Lee denies claims of insider trading on Coinbase
Litecoin founder Charlie Lee has come forward to deny latest allegations, accusing the former Google engineer of engaging te LTC insider trading on Coinbase during the time he served spil a director of engineering at the popular exchange desk.
Ter a Medium postbode from yesterday, independent cryptocurrency sleuth Bitfinex’ed – better known for their extensive criticism of exchange desk Bitfinex and its shady ties to cryptocurrency rock hard Tether – speculated the reason behind Lee’s latest decision to dump all of his Litecoin wasn’t to avoid “conflict of rente.” Instead, it wasgoed to benefit from the currency’s unexpected surge ter price.
Bitfinex’ed goes on to suggests that Lee wasgoed involved te an elaborate scheme to get Litecoin listed on Coinbase and its close associate, exchange desk GDAX – a budge that would see the ex-Googler specie out his LTC holdings following a 9,150-percent increase te value.
The independent investigator further insists that – prior to integrating Litecoin trading on Coinbase on May Trio last year – Lee had already bot exploiting his position at the company to advance his own undertaking.
For background, Lee eventually left the popular exchange desk to concentrate on Litecoin a month after LTC appeared on Coinbase.
I’m ter – lets do it!
— Brian Armstrong (@brian_armstrong) April 6,
The Bitfinex’ed postbode has since prompted Lee to react to the accusations, defending his decision to keep his engineering role at Coinbase while working on Litecoin.
“ I eyed this FUD article recently, and I figure I should refute it before it gets spread spil truth,” the former Googler wrote ter a Reddit postbode. “I’ve already seen many people say that it proves something.”
“ I joined Coinbase ter 2013 spil the [2nd] engineer and helped build Coinbase to become what it is today,” Lee continued. “I didn’t just join them last year, get them to add Litecoin, and abandon! I took [three] years before I felt like it made sense business-wise to add Litecoin to Coinbase.”
Responding to claims of collusion with Coinbase CEO and founder Brian Armstrong, Lee said that he pitched the idea to integrate Litecoin at the same time he broached adding Ethereum . The latter ultimately made it to the exchange toneelpodium very first.
“When it made sense, LTC wasgoed added to GDAX because LTC wasgoed the top-[three] trading volume of any coins at that time,” Lee added. “And when GDAX began doing massive volume for LTC, I asked Brian if it made sense for Coinbase to add LTC ter that tweet.”
“He said yes, and that wasgoed when the decision wasgoed made.”
The Litecoin founder further clarified that his departure from Coinbase wasgoed announced ahead of time. “T he entire company knew already months before the decision wasgoed made to add Litecoin,” he said.
Curiously, Coinbase has recently bot embroiled ter a series of insider trading scandals.
Shortly after Bitcoin Contant made its comienzo on the exchange desk, its price spotted an exorbitant surge on Coinbase, many cryptocurrency enthusiasts speculated the reason for the unexpected increase te value could’ve bot due to insider trading.
Indeed, Armstrong straks confirmed the company is running an internal investigation to determine whether there wasgoed any foul play. The company has since chalked up the price increase to “extreme buyer request.”
More recently, Coinbase had to dispel news that cryptocurrency Ripple (XRP) might soon make its way on the verhoging, following rumors that employees were talking about integrating XRP at the company’s Christmas party.
“ Spil of the date of this statement, wij have made no decision to add extra assets to either GDAX or Coinbase,” the postbode read. “Any statement to the contrary is untrue and not authorized by the company.”
While cryptocurrency companies are technically not yet regulated for insider trading, authorities across the globe are little by little moving towards introducing fresh legislation.
This could spell a entire loterijlot of trouble for Coinbase – or any other cryptocurrency company possibly engaging te illegitimate activities.
Published January 11, &mdash, 12:25 UTC