Kelly Loeffler Dumps Millions as COVID-19 Causes Market Crash

News / 22.03.2020

On March 20, 2020, reports show that Senator Kelly Loeffler, the founder, and CEO of Bakkt exchange, was involved in possible insider trading as per a 20th March 2020 report. The senator dumped most of her stocks shortly before the latest market crash 

The disruption of global markets and daily life appears to have been a beforehand knowledge to the Trump administration before going public. A secret senators meeting may have been instrumental in briefing them on this. Interestingly, the same administration advised against caution from the public’s part, while knowing global financial panic was around the corner.

Kelly Loeffler Common among Controversies

Not a one-off occurrence, Sen. Richard Burr is accused of dumping up to $1.6M worth in stocks after the briefing. Members of Congress trading thanks to insider information gained through their official positions yet hidden from the general public is unlawful.

Sen. Loeffler’s former exchange is also quite familiar with controversies. After assuring investors of physical BTCs being the only means of trade, the reality turned out to be anything but that. 

Now with this insider trading, she takes things up a notch. A queer fact was how she got appointed Commodities Futures Trading Commission (CFTC) committee just days after resigning as Bakkt‘s CEO. It was promptly called out by the crypto community as a clear conflict of interest. 

Bakkt was a BTC warehouse hopeful to be allowed to offer derivatives with its parent firm. It was quite dependent on being approved by the CFTC. The response from Kelly Loeffler in a brief to the wall street journal is that she was willing to recuse herself from the committee.

Crypto Investors’ Response in the Markets

The US President announced new measures and initiatives on the 21st of March to help counter the Covid19 pandemic. Before taking any further steps in light of the announcement, crypto investors are waiting for market reactions.

The price of the BTC is currently hovering at the $6,000 mark as per CoinMarketCap data. The other cryptos are also still stable as of now, hence the wait and see position by investors.

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