Coinbase will likely sidestep allegations of insider trading amid the December launch of its bitcoin cash trading feature, but U.S. District Judge Vince Chhabria said the cryptocurrency exchange company clearly botched the rollout.
Chhabria said investors’ negligence claims get past the San Francisco-based company’s motion to dismiss a second amended complaint, filed by Arizona resident Jeffrey Berk. The bitcoin cash investors allege the company recklessly deployed trading of the currency Dec. 19 and abruptly shut it down a mere two minutes after opening, saddling some users with charges hours later at a market price nearly $2,000 higher than when they placed the order.
