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CFTC Targets Coinbase and Bybit in Sweeping Crypto Investigation

Algoine News
Summary:
According to social media updates, Coinbase has received an information request from the US Commodity Futures Trading Commission (CFTC) related to the Bybit cryptocurrency exchange. Unless a court overturns the subpoena by November 30, Coinbase may need to provide user account and transaction details to the CFTC. Following this revelation, Bybit announced a growth in users to reach 20 million and self-identified as a top-three crypto exchange. The CFTC has initiated 47 cases within the digital assets sector in 2023, including actions against FTX, Celsius, Voyager Digital CEO Stephen Ehrlich, and Binance. No comments have been received from either Coinbase or Bybit.
Users of the social platform X (previously known as Twitter) have shared alerts suggesting that the popular cryptocurrency platform Coinbase has received an official request for information from the US Commodity Futures Trading Commission (CFTC). The crux of this subpoena appears to be centred around the functioning of the Bybit cryptocurrency exchange. The pervading belief among the recipients of these messages is that any Coinbase clients who also have dealings with Bybit may have been targeted. Unless a judicial body overrides the subpoena by November 30, Coinbase is likely to share details about user transactions and account information with the CFTC as per the communication sent on November 27. While Bybit, based in Dubai, had previously claimed in its service terms that it doesn't operate in the United States, it's apparently reachable via a VPN. In the aftermath of Coinbase's disclosure, Bybit declared that its user base had grown to 20 million. The crypto exchange self-identified as one of the top three platforms in the industry. As per Bybit's public announcement, their stringent approach towards risk management and superior Anti-Money Laundering (AML) guidelines have enabled them to obtain operational licenses in places like the United Arab Emirates, Kazakhstan, and Cyprus. Bybit had indicated their intent to implement Know Your Customer (KYC) verification for users back in July 2021, however, the exact rollout date for this protocol remains vague. Customer guidelines concerning the KYC norms were shared by Bybit in September 2022. Last September, Bybit disclosed plans to withdraw from the UK market due to incoming Financial Conduct Authority regulations, followed by its removal of two Russian banks from its approved payments list in August. The CFTC has positioned itself as the leading authority on crypto regulation, responsible for dealing with almost half of the cases filed in the fiscal year of 2023, equating to 47 litigations in the area of digital assets. Included among those affected were FTX, Celsius, Voyager Digital CEO Stephen Ehrlich, and Binance. Neither Coinbase nor Bybit has come forward to comment on the matter.

Published At

11/28/2023 8:51:23 PM

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