Coinbase fined 6.5 million over trading irregularities: LTC

“While the CFTC did not name the employee, the activity in question occurred in the fall of 2016 and involved LTC most associated with Charlie Lee.

During the time period, Lee was an employee of Coinbase and was integral in having the company add Litecoin to its platform.

Lee did not immediately respond to a request for comment about the CFTC announcement.”

“Did not immediately respond” means they’ve sent an email 5 minutes before publishing the article. A disgusting “journalist” habit. Also, I don’t see why should he comment about it anyway.

Coinbase probably had hundreds of employees already in 2016. I would be surprised if Charlie would have had anything to do with the washtrading.


So you are ok with fake liquidity created on LTC and no response from Lee?

Reading the article he was the only one with the motivation, was working there at the time, then left as the wash trading stopped.

And he doesn’t appear to respond to doing anything about the fake Cobelee online scamming daily .

If someone was using your name and had a fake room scamming wouldn’t you go after them? I would.

I’ve been considered very pro-ltc, but the judgement, news, and lack of response says what?

You are not in his shoes, whatever you think about incentives are just assumptions, and those can lead to very wrong conclusions.

Scammers on Twitter and anywhere are practically unstoppable, do you really think it would worth fighting and reporting them 12 hours a day for a single person? If someone (a single person) would do the scamming, I would do something, and I’m sure Charlie would do, too. But when there is an industry built on this with hundreds of thousands of dollars behind them, I wouldn’t try to fight them off by myself, no.

Says absolute nothing. The lack of evidence does not make more evidence. And currently there is absolutely no public evidence that from the hundreds of employees, Charlie was the one doing the washtrading.

And no, I’m not blinded, simply my job is based on facts and evidence. This is my life. I’m a scientist.

“When you are studying any matter or considering any philosophy, ask yourself only what are the facts and what is the truth that the facts bear out. Never let yourself be diverted either by what you wish to believe, or by what you think would have beneficent social effects if it were believed. But look only, and solely, at what are the facts.” -Bertrand Russell


One more thought, while we are imagining incentives. What if the fake liquidity was made by someone else for the request of Brian Armstrong, and when Charlie figured it out, stopped it and left the company. Or whatever. There are so many possibilities, that it doesn’t make sense trying to guess.
I don’t think this happened. I don’t know what happened. Frankly, I don’t even care too much, what shitty busines Coinbase were doing in the past or even now.

This is quite stupid as LTCBTC volume during the months mentioned in CTFC report, the average daily volume was less than $10K, peaking at $50K. To me it doesn’t seem like they were attempting to fake liquidity to increase investor interest in LTC, but instead to increase trading on the GDAX platform.