A <a href="https://www.wsj.com/articles/crypto-might-have-an-insider-trading-problem-11653084398" target="_blank" rel="noopener">report</a> from Wall Street Journal (WSJ) has claimed that several anonymous crypto investors profited from insider knowledge of when tokens would be listed on exchanges, citing public data.
<h2><strong>Insider Trading Rampant in Crypto, According to WSJ</strong></h2>
The report highlighted that one unknown crypto wallet had acquired a stake worth $360,000 of Gnosis coins, days before Binance revealed that it would list Gnosis on its platform.

Shortly after the announcement, the wallet took advantage of the token’s rising price and liquidated everything in 24 hours. Per the report, the anon wallet netted a profit of about $140,000 and a return of roughly 40%. The same wallet also exhibited similar patterns with at least three other tokens.

The report further said that 46 wallets had purchased a combined $17.3 million worth of cryptocurrencies just before they were listed on Coinbase, Binance, and FTX.

Although visible profits from the sale of the tokens were more than the claims, the actual profits are likely higher. For instance, many wallets moved a part of their stakes to exchanges instead of selling directly.
<h2><strong>Coinbase, Binance, FTX Denies Claim</strong></h2>
In response to the report, Coinbase, Binance, and FTX each said they had compliance policies prohibiting employees from trading on insider information.

Coinbase and FTX said they reviewed the analysis and determined that the trading activity mentioned in the report didn’t violate their policies. While Binance's spokesperson said none of the wallet addresses were linked to its employees.

WSJ Claims Crypto Has An Insider Trading Problem

A report WSJ has claimed that several anonymous crypto investors profited from inside knowledge of when tokens would be listed on exchanges.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

WSJ Claims Crypto Has An Insider Trading Problem

Top Picks