Ah, this comment provided needed context and sources to support the claims outlined above! Thank goodness the Internet is forever or knowledge and a sense of community like this would be pointless!
What actually consitutes the crime? Hearing about it and profiting from the change or the act of telling staff about these changes or both? And if both, are both punished equally or is telling a more serious offense?
Suppose you have $1000 in stocks for XYZ inc. You’re also in charge for their communication channel with the public
You’re told from your boss that the company got badly hacked and will cease operation immediately, please write a public statement about that.
Instead of doing that, you use that insider info to call your broker and sell all your stocks for $1000. Then you go on the computer and write that public statement. The company is out of business and the stocks are now worth $0.01. But luckily you got out before the disaster, right? No, it’s insider trading and it will send you to prison.
So IMHO both will be charged. The admins should have told only under NDA, the mods should not have sold (but for all that money? Who would have just accepted that 70k dollars are gone immediately?)
Now, this shitcoin was monopoly money, but for some reason people invested thousands on it. Selling everything after getting insider info is the definition of insider trading.
Maybe no investigation will occur because it was unregulated trading of monopoly money but who knows, why risking having multiple discussions about everything happened
Insider trading consists of using non-public information to profit on a trade.
Now since shitcoins are not a regulated security, I don’t know if they fall under insider trading laws. They may, however, fall under fraud and conspiracy to commit fraud laws. If they knowingly defrauded people into paying for what they were conspiring to make a worthless asset, or sold that asset under conditions they knew to be false, I could see them being charged.
I still know some people that mod on reddit. Gonna ask if any were notified by reddit like these peeps lol.
And does this have any ties to the Fortnite subreddits with their own crypto stuff that came out earlier this year? I had almost modded that sub this year but decided against it when I found out they were dealing with crypto crap.
Well, the article only mentions shady trade with $moons from r/CryptoCurrency, not with $bricks from r/FortNiteBR. However I’m not surprised if some investigation dug some shit with other subreddits too, so perhaps you avoided a lot of future annoyance in your life?
concidering mods are not staff but volunteers on reddit, would this be concidered insider trading even? It’s not like the mods are on payroll for reddit. If this information was shared on the reddit which is a public info source, it could also be deemed public knowledge at that point regardless if I understand it right.
edit: looking into it, it appears the info “might” have been shared an hour before launch in a moderator only call, if that’s true I’m still curious if it was insider trading but it’s definitly a bigger chance it is
I’m not informed even in the laws of my own country, let alone some other country like USA. That said, based on this Wikipedia link, it would - because for a small time period, they didn’t disclose the info at large, but only to a handful of individuals.
And regardless of the applicability of the law, on the best hypothesis it’s Reddit Inc. doing stupid shit again, screwing with the userbase for no good reason, because whoever is in charge of the company is as insightful as a brick.
The new and exciting revolutionary version of Wall Street can uplift humanity and save the planet by having the same old grifts with a new coat of paint, less associations with tangible objects, and also a much larger carbon footprint per transaction! morshupls
I don’t disagree with you that this shit shouldn’t’ve even started on first place. It’s just Reddit trying to milk its userbase, and the world be damned, as usual.
However, once started, Reddit had the responsibility to bring its closure in a fair way. And by “fair” I mean not “tipping” some individuals before the userbase at large knew it, so they could trade them off before the price crashed.
I know that. My point is that those “tokens” and related cryptogrifts are just a sillier and even less tangible Wall Street, complete with insider trading and golden parachutes.
For some reason they thought it would gain value as an investment.
TBH I never saw a shitcoin holding value. Once the hype for the launch is gone, they always nosedive in value. You need to have some gambling issues to believe that no, this coin is special and this time it will gain value
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