Coinbase, the US-based cryptocurrency exchange, has recently informed an undisclosed number of its users about a received subpoena.
Coinbase, the US-based cryptocurrency exchange, has recently informed an undisclosed number of its users about a received subpoena. This legal order has the potential to result in the sharing of customer account information with the Commodities Futures Trading Commission (CFTC). Coinbase has chosen not to make any public statements about the matter, but it appears that the subpoena is connected to Bybit, a Dubai-based crypto exchange founded by Ben Zhou in 2018.
Insiders who are familiar with the situation have verified that Coinbase did send emails to affected customers. However, specific details regarding the information requested by the CFTC, its relationship to Bybit, and the number of impacted users have not been disclosed.
In the communication sent to users, Coinbase mentioned the option of challenging the subpoena in court before the deadline of November 30. Nevertheless, insiders have revealed that Coinbase is collaborating with the CFTC to determine the data that may be shared, with efforts made to minimize the extent of information disclosed. There is speculation that the subpoena could be targeting individuals who have used both Coinbase and Bybit, potentially as part of a broader case against Bybit.
In previous instances, the CFTC has taken legal action against crypto exchanges for various reasons, such as the absence of know-your-customer (KYC) requirements, operating illegal digital asset derivatives exchanges, and providing futures trading without proper registration. Bybit only implemented KYC standards for all its services in May of this year.
Meanwhile, Coinbase (NASDAQ: COIN) shares hit new yearly highs on Tuesday, closing at $128.27. It has gained 74.28% over the past month amidst the bullish crypto market as investors anticipate the spot Bitcoin ETFs approval. The South Korean pension fund recently purchased $20 million worth of Coinbase stock.
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