Insider Trading and Cryptocurrency | Blockchain News
Especially in light of the recent conviction of a former Coinbase manager’s brother for insider trading, the issue of insider trading has emerged as one of the most pressing concerns in the cryptocurrency ecosystem.
The allegations of insider trading using cryptocurrencies were believed to be the first of their kind; However, a new set of wallet addresses with a transaction history that is related to Binance listings has now sparked suspicion.
The CEO of Coinbase, Conor Grogan, took to Twitter to draw attention to the transaction behavior of a few anonymous wallets over the past 18 months.
It is believed that the anonymous wallets bought a number of unlisted tokens on Binance in the minutes before the announcement of their listing and then dumped them immediately after the announcement.
The first case of this kind occurred with Rar tokens, and it involved one of these wallets buying $900,000 worth of Rari just before they were offered for sale and then selling them minutes later.
Another wallet beginning with 0x20 participated in the purchase of around 78,000 ERN between June 17 and June 21 and then sold them immediately after the listing alert.
A transaction known as a “token dump” occurred with the TORN token when one of the wallets mentioned bought hundreds of thousands of these tokens and then sold them immediately after they were announced.
A similar trend was seen before the RAMP token was listed on Binance. Within a few days, one of these wallets starting with 0xaf bought $500,000 in RAMP. Minutes after the listing announcement, the wallet sent tokens to Binance.
The transaction resulted in a profit for the owner of $100,000.
The owner of the wallet dumped the newly listed token on the market in the same way as before, resulting in an additional $100,000 profit from Binance’s GNO listing.
The token dump that occurred shortly after Binance’s debut of the cryptocurrency resulted in these wallets making hundreds of thousands of dollars.
Due to the correctness of the trade, it can be inferred that the owner of the wallet has access to confidential information about these postings.
Grogan speculated that this may have been the work of a “rogue employee related to the listing team who would have knowledge of new asset releases or a trader who discovered some sort of API or staging/test trading exchange breach.”
