The problem of insider trading in crypto

On June 1, the former OpensEa market manager Nathaniel Chestein on charges of NFT and money laundering was arrested in the United States. According to the prosecutor’s office, Chestain used the confidential Opensea information for personal benefit. This is the first time that insider trading in the crypto led to real arrest. Another high -profile example of this kind of fraud happened on April 12, when a certain trader bought little -known altcoins worth $ 400,000 Digital Currency , and the next day a few minutes before the announcement of their listing on Coinbase sold purchased assets for $ 572,000. The crypto community believes that this is another example of insider trade – the use of non -public or confidential information to gain the advantage in the trade of cryptoactives. In this article we will tell you what insider trading is in crypto.

What is insider trade

Insiders and insider trade are the terms that came to the cryptomor from the stock market.

Insiders are people or companies with non -public information about securities or their issuers, that is, those who know more about the state of affairs are more than simple investors.

Insider information is non -public data that give an advantage in transactions or can be used to manipulate assets price. That is, the insider knows about the issuer issuing something that helps him more profitable to sell or buy this asset.

At the same time, analytical forecasts, expert opinions, public news about the project are not insider data. If the information is publicly available, it is not insider. For this reason, you should not look for non -public data in various “insider” channels, chats and forums. The main goal of most of their authors is to sell “exclusive access to the closed chat” to gullible users ”. In fact, the chances that real insiders will post the worthwhile information into open access are close to zero.

Insider trade – the use of insider information in market transactions. For example, information about the upcoming partnership or listing found, exploited or leading against the project of the authorities, can largely affect the price of the asset.

In the stock market, insiders may have holders of a large stock package, top managers, members of the board of directors, auditors, management companies, brokers and other professional market participants. Under securities legislation, insiders are obliged to report to the exchange regulator about transactions with the papers of their company. Moreover, in some cases, for example, before publishing reports, they do not have the right to trade them on the exchange.

What is the danger of insider trade

Insider trade negatively affects any market, because:

  • Allows unscrupulous players to manipulate the market;
  • Gives the insider a chance to earn a profit, but can lead to large losses of other traders;
  • Spoils the reputation of companies whose employees came across insider trade;
  • Reduces confidence in the market and creates unequal conditions for trade – it is unfair if one user has more data than others. In the future, this may affect the growth rate of the entire sector;
  • Gives regulators more reasons to tighten control over the market.

For these reasons, insider trade in the stock market is a criminal criminal that is punishable by large fines or even imprisonment. Although in Russia there were no such precedents yet, the United States is monitoring this type of fraud strictly.

As for the cryptorrhnik, here insider trade is so far adjusted very poorly.

In the United States, cryptorrhnines are regulated by the securities and exchanges (SECs) commission and commercial futures trading commission (CFTC). It is they who should hold employees and issuers of crypto projects caught on manipulations. But in practice this has not yet happened. The accusations of Nathaniel Chastain, whom we talked about at the beginning of the article and will tell in more detail below, were presented by the Ministry of Justice. In the stock market, litigation of possible insider trade can go on for years. Crypto is still adjusted much less strictly, many users here retain anonymity.

Examples of insider trade

We will analyze several large and widely known cases of insider trade.

Insider trade conducted by regulator employees. Sometimes non -public information is used for trading not only crypto -plots, but also those who should look after them.

At the beginning of 2018, the South Korean financial supervision service (FSS) reported the investigation of cases of insider trading digital assets among employees of the department. The head of the FSS then admitted that before announcing the strengthening of control over national crypto floods, officials of the department hastily got rid of their cryptocurrencies. But then the law of the country did not prohibit civil servants to trade digital assets – and no one was held accountable.

Insiders in Skysoin. In 2018, Cryptiantia Jared Dunn published an audio recording on Twitter, where the head of the Skysoin project Brandon Sint talks about the manipulation of the price of the project coin (including the use of pamp-i-Damp-schemes) and cases of insider trading, conducted by several employees and administration of the project. Their actions allegedly contributed to a sharp take -off of the price of the Sky coin – from $ 9 to $ 38. The incident did not receive further development.

Investigation of insider trade in Binance. In September 2021, the SEC began an investigation of possible insider trade and market manipulation on the largest crypto -story from the world. CFTC is also probably involved in the investigation. The exchange said that it adheres to the policy of total rejection of insider trade – the security service is monitoring its execution, “which holds those who participated in this” (sounds as recognition that this happens). So far, nothing is known about the results of the research of departments.


It is difficult to reliably say how widely insider trade is widespread in crypto. She, no doubt, is, and the examples above clearly show how profitable it can be. But it is difficult to track such cases, and to prove the fact of insider trade is even more difficult.

Unfortunately, the crypto community cannot directly deal with this problem – you have to rely only on the conscientiousness of developers and crypto floods. The good news is that the market is developing – and there are fewer opportunities for insider manipulations.

For traders, the Revenuebot market crypto offers an automated trade interface. The user can trade on top crypto exchanges, including: Binance, Bittrex, FTX, OKX and others. Revenuebot provides traders with the opportunity to create trading bots that allow you to get stable passive earnings. Of the main advantages of the service, the following can be distinguished:

  1. Payment for the services of the service occurs only after receiving the first profit, no prepayment is required;
  2. Revenuebot internal marketplace allows you to buy a finished bot and sell a profitable configuration;
  3. The presence of a Revenuebot referral program allows you to make money without even resorting to trading;
  4. Revenuebot uses a strategy for averaging dollar value (DCA), with its help you can successfully trade and receive income in the long run;
  5. Automatic switching of a trading pair allows you to benefit from trade always. The bot itself will switch to another trading pair if the main one is not possible to earn money.

Revenuebot has a Telegram chat for users and an official Telegram channel where the service news is published, as well as relevant information from the crypto industry. More details with the capabilities of the service can be found on the official website Revenuebot .

Without Kevordo

The share of Ripple among the Holders XRP first dropped below 50%

For the first time in history, the volume of Ripple Labs of XRP tokens fell below 50% of the emission. Such data are given in the report on the company’s activities for the third quarter.

Ripple became a partner of the provider of money transfers from Lithuania

The American fintech company Ripple has announced partnership with the Lithuanian provider of international money-translators Finci.

Ripple will launch a liquidity management service in Bitcoin, Ethereum, XRP, LTC, BCH and ETC

Ripple fintech company announced the launch of Ripple Liquidity Hub in 2022. The service integrated with the ON Demand Liquidity platform will allow financial institutions to offer customers the trade and storage of Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash and Ethereum Classic.

XRP grew by 14% amid expansion of Ripple in the Asia-Pacific region

On Wednesday, July 28, the price of the XRP token in the moment reached $ 0.74, which corresponds to the monthly maximum. Asset quotes increased by 14%.

Brad Garlinghaus called 2020 "significant" for Ripple

In 2020, the RipPlenet network processed more than 3 million transactions, which is five times more than a year earlier, CEO Ripple Brad Garlinghaus said, calling a year “significant” for the company.

The head of Moneygram spoke about the results of the partnership with Ripple

For 18 months of cooperation with the Ripple financial company, the number of transactions through the application of the American money transfers MoneyGram money has increased by 220%. About this CEO of his operator Alex Holmes said in an interview with CNN.

Moneygram received $ 9.3 million from Ripple in the third quarter

Fintech Startap Ripple sent $ 9.3 million MoneyGram money transfer service, follows from the company’s report for the third quarter.

Ripple will launch in Brazil a product of instant Капіталізація криптовалютного liquidity based on XRP

The head of the Ripple Global Banking Maryan Delainna reported on the upcoming expansion of the decision for cross-border payments On-Demand Liquidity (ODL) to Brazil. This is reported by Cointelegraph.

Ripple money transfers in the European corridor sharply increased

The volume of funds conducted through the ON-Demand Liquidity (ODL) payment system from Ripple in Europe increased sharply, making this direction the second most popular on the site.

Ripple entered the market of cross -border transfers with a volume of $ 6.7 billion per year

Azimo digital money transfers provider in partnership with the Siamese Commercial Bank (SCB) launched an instant cross-border payment service from Europe to Thailand based on the fintech startup technology Ripple.

Ripple partner refused to solve the XRP for the transfer market $ 36 billion

Ingonational Money Express Inc cash transfers. (Intermex), Ripple partner, said he did not intend to use a startup solution for his key markets, such as Mexico.

The startup Ripple announced a new partnership – XRP has risen in price by 12%

Ripple Fintech Startap has concluded a partnership with the provider of money transfers by International Money Express Inc. (Intermex). Against the background of news, the price of the XRP token increased by 12.01% per day.

Transfergo will switch to the Ripple payment solution using XRP

The Transfergo money transfers company plans to switch to the Ripple Payment decision “Liquidity on request” (ODL), in which the XRP is an intermediate currency.

*Daily newsletter – a brief summary of the most important news of the previous day. Reading takes no more than two minutes. It turns out on business days at 08:00 in Kyiv

*Weekly mailing – we explain who and how changed the industry in a week. Ideal for those who do not have time behind the news stream during the day. It turns out on Friday at 20:00 in Kyiv.

FORKLOG – Bitcoin’s cult magazine, blockchain technology and digital economy. We supply news and analytics in the cryptocurrency market since 2014 daily. About us advertising

All published materials belong for forklog. You can reprint our materials only after agreeing with the editors and indicating the active link to FORKLOG.

All published materials belong for forklog. You can reprint our materials only after agreeing with the editors and indicating the active link to FORKLOG.