A U.S. judge has ruled that Coinbase must face negligence charges over its actions around the launch of Bitcoin Cash trading. However, the majority of claims against the company, including those of fraud and unfair competition, were thrown out.
“Incompetence Born Of Haste”
Judge Vince Chhabria decided that the refiled complaint laid out a “plausible account that Coinbase breached its duty to maintain a functional market,” and its actions constituted an apparent “incompetence born of haste.”
Coinbase briefly enabled US Dollar orders for BCH in December 2017, but suspended them after just two minutes, citing significant volatility. Prices pumped in the hours leading up to the announcement that Bitcoin Cash would be added. Observers suggested that this was evidence of insider trading.
Coinbase had originally faced criticism in August of 2017 for its decision not to support Bitcoin Cash, following its hard-fork from Bitcoin.
Buyers Allege Plausible Motive
BCash buyers claimed that Coinbase could have announced the…