Brian Armstrong’s U.S. Crypto Exchange Receives CFTC Subpoena Regarding Bybit
A court summons from the Commodity Futures Trading Commission (CFTC) regarding rival platform Bybit has been sent to select customers of Coinbase, America’s largest crypto exchange. The subpoena is part of the CFTC’s investigation into Bybit, a Dubai-based digital asset trading venue.
According to an email sent by Coinbase to its customers, the exchange may provide information on certain accounts and their transaction histories in compliance with U.S. laws. Customers were informed that no action is required from them, but Coinbase may respond to the subpoena by sending information about their Coinbase accounts to the CFTC.
Coinbase’s Legal Obligations and Bybit’s Silence
In May, Coinbase notified its users about legal requirements to collect customer information and respond to subpoenas. As for Bybit, neither the platform nor its CEO, Ben Zhou, have commented on the development yet. Bybit is currently facing a $953 million lawsuit from bankrupt crypto exchange FTX and plans to exit UK markets due to new advertising regulations.
Coinbase CEO Brian Armstrong and chief legal officer Paul Grewal have not responded to the news at the time of writing, but multiple sources have confirmed its authenticity.
Enforcement Action Against Coinbase and Binance
Coinbase has also faced enforcement action from the Securities and Exchange Commission (SEC), which sued the exchange in June for allegedly operating as an unregistered broker, clearing agency, and national trading platform. Although Coinbase denied the allegations, it could potentially lead to a lengthy litigation process with the SEC.
Rival exchange Binance also faced similar charges from multiple regulatory agencies, resulting in a $4.3 billion settlement and leadership changes.
Hot Take: Coinbase Faces CFTC Subpoena in Bybit Investigation
Coinbase, the largest crypto exchange in the U.S., has received a court summons from the CFTC regarding its investigation into rival platform Bybit. The exchange has notified select customers that it may provide information on certain accounts and transactions as required by U.S. laws. No action is necessary from customers, but Coinbase may respond to the subpoena by sharing account information with the CFTC. Bybit and its CEO have not yet commented on the situation, while Coinbase’s CEO and chief legal officer have yet to respond. This comes as Coinbase continues to face enforcement action from the SEC for allegedly operating without registration, similar to Binance’s recent troubles.
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