A major bitcoin exchange is reviewing a possible case of insider trading after the price of the bitcoin cash soared.
Late on Tuesday, Coinbase revealed its support for the bitcoin offshoot. However, the price of the cryptocurrency soared before the news was made public.
In a blog post, Brian Armstrong, the founder of Coinbase stated: “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.”
Employees of the company, which is supported by top venture capitalists of the Silicon Valley, had been prohibited from trading the cryptocurrency for over a month and are contracted not to disclose information such as the support for a new currency with the public.
Bitcoin cash soared to a new record high of $3,000 following the announcement, .but it made gains prior to the news.
Meanwhile, Coinbase suspended the trading of bitcoin cash on Wednesday. However, it was expected to resume later in the day.