Former Bakkt CEO Dumped Millions in Stock Before Coronavirus-Induced Market Crash

News / 22.03.2020
  • Senator Kelly Loeffler, accused of dumping almost all her stocks prior to the recent market crash
  • Loeffler, former Bakkt CEO was just recently caught up in a conflict of interest scandal after she joined the Commodities Futures Trading Commission (CFTC)
  • Cryptocurrency investors are now awaiting market reaction after the U.S announced new initiatives to boost the economy

On March 20, 2020, reports revealed that Senator Kelly Loeffler, the founder and CEO of Bakkt exchange, was involved in a clear example of insider trading.

It seems that the Trump administration knew that the coronavirus would upend global markets and daily life well before it was made obvious to the public. That appears to be the takeaway from a secret meeting of all senators. This was during a time when we were told there is no cause for concern, and yet it seems that behind closed doors, they knew a global financial panic was coming.

Sen. Richard Burr is accused of doing the same: dumping $1.6M in stocks after the secret briefing on the economic effects of the coronavirus.

It is unlawful for members of Congress to trade using info withheld from the general public gained from their official roles.

Loeffler No Stranger to Controversy

Considering that Loeffler’s own former exchange had assured investors that they would only trade with physical BTC, which turned out to be untrue, it’s not surprising that she is now caught up in insider trading.

In fact, the Senator was appointed to the committee that oversees the Commodities Futures Trading Commission (CFTC), just days after resigning as CEO of Bakkt.

This was called out by many in the crypto space as a massive conflict of interest. Being a BTC warehouse hopeful of getting permission to offer derivatives products with its parent firm, Bakkt was desperate to be approved by the CFTC. This prompted Loeffler to respond to the accusations, telling the wall street journal that she was willing to recuse herself from the committee.

Crypto Investors Wait for Market Reaction

Meanwhile, on March 21, President Donald Trump announced new measures and initiatives that would help the United States fight the Coronavirus outbreak that is affecting the entire world.

Following the announcement, crypto investors are currently waiting for the reaction of the market before taking a strong verdict on whether to enter or exit their crypto positions.

BTC is currently trading at the $6,000 mark according to data provided by CoinMarketCap. Other digital assets are also operating stably at the time of writing.

Source: Cryptopress.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.