San-Francisco based crypto exchange, Coinbase will be in court on January 31, 2019, for an alleged Bitcoin Cash (BCH) insider trading activity in 2017.
The lawsuit was filed by Jeffrey Berk and some Coinbase users who claimed that some of the exchange officials manipulated BCH value on the platform in order to make massive profits.
In October, the lawsuit was rejected by District Judge Vince Chhabria because the court filing did not “describe the scope or content of Coinbase duty.”
Now, according to new court documents released on Nov. 20, the filing has been approved because Jeffrey Berk and the other users have provided evidence that suggests that Coinbase has not met up with its listing rules.
A section of the updated filing reads,
“The sudden launch (of BCH) was effectively part of an attack by Coinbase and (CEO Brian Armstrong) to depress the price of BTC and to inflate the price of BCH, to encourage more transactions and greater profitability for Coinbase.”
Coinbase has until December 20 to issue a response while the court hearing is scheduled for January 31, 2019.
Fresh BCH Scandal
Coinbase’s new court issue will once again bring to mind, Bitcoin Cash, the Bitcoin hardfork coin which underwent a network upgrade on Nov 15.
It is widely believed that the altcoin split into BCHABC and BCHSV has been the reason while the crypto markets have seen a massive decline within the last two weeks.
Coming into the media spotlight while the rest of the community is waiting for the network to stabilize will likely plunge the coin into further controversy in the coming weeks.