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Bithumb exchange accused of insider trading

An employee of the largest korean crypto exchange has been busted spreading insider information about coin listing.

Bithumb exchange accused of insider trading

An employee of Bithumb, one of the largest cryptocurrency exchanges in South Korea, has disclosed a valuable piece of information in a private conversation. He claimed that Bithumb is about to list ZCash and Qtum in the upcoming days, which usually means that the price of these tokens will go up due to increased demand.

leaked screenshot

Leaked Screenshot of an official bithumb document confirming the listing of ZCash

You can see how those in-the-know were able to take advantage of these news and make a pretty profit on the screenshot below.

twitter screenshot

Capitalism, and thus the modern markets and banking industry, are based on the works of Adam Smith. His theories proposed that the free market will somehow, by itself, sort out the prices for various assets in the most just and fair manner. However, his theories are only applicable when there is equal access to information. If this wasn't ZCash, but, let's say, IBM or Google stock, this exchange employee would be facing some serious jail time.

Incidents like these prove that the human nature, on average, prioritizes personal gains over dedication to free market theories. This incident can be used by the governments worldwide as a precedent for insider trading happening on the cryptocurrency exchanges as the reason for introducing heavy regulations of centralized exchanges.

We wish the governments best of luck in trying to regulate decentralized and fair by design exchanges such as Saturn Network.

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