Poloniex trading platform delists 17 altcoins ahead of schedule due to insider trading?

Golden Finance News - On April 18, 2017, Poloniex Bitcoin trading platform issued an announcement, announcing that it will soon delist 17 altcoins.

Poloniex Bitcoin trading platform issued an announcement to remove 17 altcoins Image source: Golden Finance

However, there are signs that someone knew about the decision before Poloniex officially announced it on Twitter.

Voxelus representatives allegedly received information that there may be insider trading on the Poloniex platform.

Cryptocurrency experts expect that the removal of altcoins from major exchanges like Poloniex will have a negative impact on altcoins. The listing and delisting of altcoins on trading platforms will also affect market prices. But it seems that someone has already taken advantage of this opportunity to make a fortune.

Before Poloniex announced the delisting, these altcoins saw a large sell-off. Image source: Golden Finance

The price charts of the altcoins that were delisted from the Poloniex exchange (Boolberry, Bitstar, Coin 2.1, CureCoin, Horizon, I/O Coin, Myriad, NobleCoin, NuShares, Qibuck, Qora, Quatloo, Rubycoin, ShadowCash, SuperNET, Voxels, Magi) show that there was a large sell-off of these altcoins just before Poloniex announced the delisting news.

Martin Repetto, CEO of Voxelus and Voxels Coin (VOX), suspects insider trading on Poloniex. He commented to Coinidol.com:

“To be honest, there was no warning from Poloniex, there were no problems with voxel and Voxelus, and in fact our operations were getting better and better. I don’t know why Poloniex chose to delist our currency, and they didn’t contact us before, but if you are interested in investigating, look at the charts of all the altcoins that announced delisting, their trends look almost exactly the same, as if “someone” knew these altcoins would be delisted, so they all dropped their prices like crazy.”

So far, no regulations have been introduced in the cryptocurrency and blockchain markets. Image source: Golden Finance

He continued, “We have no proof, but the grapevine is full of rumors that everyone thinks there is insider information. This could turn into a scandal. We want to know why we were delisted and want to solve the problem and get back online. We also want to know the trend charts of all the delisted altcoins one day after the delisting news was announced.”

Insider trading is prohibited in traditional financial markets, and in some countries, illegal trading faces fines of up to three times the profit or loss avoided through trading (in the United States) and even possible imprisonment (in India). In the EU and the UK, all trading on non-public information should at least be subject to civil penalties, or possibly criminal penalties.

However, so far, the cryptocurrency and blockchain markets have not introduced any regulations to regulate these activities.

A cryptocurrency trading expert who wishes to remain anonymous revealed the situation on Poloniex to Coinidol.com:

"Someone is organizing a class action lawsuit for insider trading. I don't know what the outcome will be. The investigation may involve all transactions, and all emails will be carefully examined from beginning to end. It may take a lot of effort to explain this matter clearly."