Coinbase has sent an email to select users saying it has received a subpoena from the U.S. CFTC concerning Bybit, a rival exchange.
Popular U.S. cryptocurrency exchange Coinbase reportedly sent an email to a select group of customers earlier this week. The email contained a notice that the exchange received a subpoena from the U.S. Commodity Futures Trading Commission (CFTC).
According to the email, which was widely shared on social media by Coinbase users and confirmed by a Coinbase spokesperson, the subpoena Coinbase received is linked to Dubai-based crypto exchange Bybit.
A subpoena is an official order usually sent by a regulatory body to a company to seek certain pertinent information or notify it of an ongoing investigation into its operations. The former is the case for Coinbase, as the CFTC seeks documentation related to Bybit.
Specifically, Coinbase revealed that the CFTC wishes to collect relevant user account information and details about their transaction history. Coinbase noted that no action is required from users and that the exchange may reply to the subpoena with “a motion to quash or other objection.”
If Coinbase takes that direction and wins, it will not need to hand over the required user information. However, the exchange suggested it would be compelled to send the information to the CFTC if the already filed subpoena is served before November 30.
Is the CFTC Investigating Bybit?
The Coinbase email has fueled rumors that the U.S. CFTC is investigating Bybit. According to CoinMarketCap data, Bybit is the fourth largest crypto exchange by trading volume, trailing only Binance, Coinbase, and Kraken.
However, it is public knowledge that the exchange only introduced a mandatory KYC regime for users in May 2023, despite being in operation since 2018. The development has led to speculations that Bybit is under investigation for serving U.S. customers without a regulatory license and violating anti-money laundering (AML).
While nothing is yet confirmed at this time, many users who interacted with both Coinbase and Bybit have received the said email. Time will see whether the subpoena leads to the revelation of further details about the emerging CFTC and Bybit story.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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