Former Coinbase Employee Found Guilty of Insider Trading: Karma Has Been Served!

Everyone loves a good rags-to-riches story, but what about the reverse? It seems that one former Coinbase employee has found out the hard way that it really pays to play by the rules.

According to reports, a former employee at the cryptocurrency exchange company has plead guilty to insider trading charges. For those who don’t know, insider trading is a serious crime wherein traders use confidential information to make a profit in the stock market.

The Tale of the Tape

The former Coinbase employee in question is named Matthew Elion, who allegedly purchased $384,000 worth of Litecoin (LTC) and Bitcoin Cash (BCH) just prior to a surprise announcement by Coinbase in December 2017.

Elion had access to confidential information pertaining to the announcement, and this is what led to his arrest and subsequent guilty plea in the Montgomery County Court. He faces prison time and a hefty fine.

Lessons Learned

It just goes to show you the importance of playing by the rules, even in an ever-changing, rapidly-evolving industry like cryptocurrency. Elion clearly thought he could get away with illegally profiting off of other people’s hard work and was unfortunately proven wrong.

Here are a few lessons you can take away from this case:

• Be ethical: don’t take shortcuts when it comes to making money.
• Avoid insider trading at all costs: it’s not worth the risk or the potential consequences.
• Trust your instincts: if something seems too good to be true, it probably is.

Karma has been served

While it’s sad to see someone face such stiff penalties for a single mistake, this case should serve as a reminder to us all that karma is real. Doing the right thing will always pay off in the end, so think twice before taking any shortcuts!