Coinbase Users Alerted About Possible Sharing of Customer Information with CFTC
Users of Coinbase have received emails informing them that their customer data may be shared with the US Commodities Futures Trading Commission (CFTC) due to a subpoena served to Coinbase. The legal order is believed to be connected to an investigation involving Bybit, a Dubai-based crypto exchange founded by Ben Zhou. Coinbase has not made a public statement regarding the matter, but the email sent to users mentioned the possibility of challenging the subpoena in court before November 30.
Report Suggests Coinbase Collaborating with CFTC
A report from Decrypt, citing unnamed sources, suggests that Coinbase is indeed working with the CFTC to determine what data will be shared, with the aim of limiting the scope as much as possible.
Speculations and Unaffected Users
Some Coinbase users have speculated that only those who have used both Coinbase and Bybit might be affected by this investigation. However, Decrypt’s sources reveal that multiple users who have never used Bybit or created accounts with the exchange have also received subpoena notice emails from Coinbase.
Past Actions by CFTC and Binance Settlement
The CFTC has previously taken legal action against Binance for violations including failure to implement know-your-customer (KYC) requirements and operating illegal digital assets derivatives exchanges. In a recent settlement between Binance and the US Department of Justice (DOJ), Binance agreed to pay a $1.35 billion fine for violating CFTC guidelines. Bybit began enforcing KYC standards across all its services in May 2023. At present, no lawsuit has been filed against Bybit by the CFTC.
Hot Take: What You Need to Know About the CFTC’s Request for Coinbase User Data
Coinbase users have been alerted about the potential sharing of their customer information with the CFTC due to a subpoena served to Coinbase. The investigation is related to Bybit, a Dubai-based crypto exchange. While Coinbase has not commented publicly on the matter, reports suggest that they are working with the CFTC to determine the extent of data sharing. Some users speculate that only those who have used both Coinbase and Bybit will be affected, but there are cases of unaffected users who received subpoena notice emails. The CFTC has previously taken action against Binance, and Bybit has implemented KYC standards. No lawsuit has been filed against Bybit by the CFTC at this time.
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