Bitcoin Cash prices rallied on Tuesday after Coinbase, one of the most popular digital wallet exchanges, had added the cryptocurrency to allow for trading. Prior to the public announcement, Bitcoin Cash prices were already surging. Coinbase has now launched a probe into the accusations of insider trading.
Trading in bitcoin cash will be suspended until 1200 ET on Wednesday, according to Coinbase’s status page.
Bitcoin Cash prices surged to nearly $9,000 on Tuesday prior to the announcement going live. Many investors accused the exchange of insider trading that caused a major volatility swing, at the same time sending all other major cryptocurrencies crashing.
At the same time, Bitcoin prices fell nearly 15 percent to as low as $15,000 on Tuesday before the announcement.
“Given the price increase in the hours leading up the announcement, we will be conducting an investigation into this matter. If we find evidence of any employee or contractor violating our policies?—?directly or indirectly?—?I will not hesitate to terminate the employee immediately and take appropriate legal action.” wrote Coinbase CEO, Brian Armstrong.
Coinbase stated on its Bitcoin Cash blog announcement that it “maintains a strict trading policy” and employees have been “prohibited from trading in Bitcoin Cash for several weeks.”
Bitcoin Cash resulted in a split from Bitcoin in August after users had complained that Bitcoin’s blockchain was outdated and needed a revamp. The split consensus resulted in the creation of Bitcoin Cash that allowed for better blockchain and faster transaction times.