Coinbase warned some users that it had received a subpoena from U.S. regulators related to cryptocurrency exchange Bybit, according to an email sent by the exchange posted on social media.
An official familiar with the matter confirmed the authenticity of the email through a message sent to The Block.
“No action is required on your part, but Coinbase may respond to the subpoena unless a motion to dismiss or other objection to the subpoena filed in court is served before November 30, 2023. This may include: This includes sending information about the transaction to: Commodity Futures Trading Commission,’ the email said.
The CFTC did not respond to a request for comment and Bybit declined to comment. Bybit, led by CEO Ben Zhou, is headquartered in Dubai.
Regulatory Agency Investigation
The CFTC has certain powers to conduct investigations, including voluntary depositions and subpoenas, under its Enforcement Manual. Additionally, the law requires Coinbase to collect information, including on matters such as: summonsThe exchange said in a May post:
“We may access, read, preserve and disclose your information when we believe it is reasonably necessary to comply with any law, legal obligation, regulation, law enforcement, governmental and other legal requests, court order, or to disclose to tax authorities. there is.” Coinbase said.
Other federal agencies have requested subpoenas for cryptocurrency-related matters. Payment giant PayPal announced earlier this month summons Information from the Securities and Exchange Commission related to the PayPay USD stablecoin.
Coinbase itself has come under regulatory scrutiny from the Securities and Exchange Commission. be sued In June, it was indicted on charges of operating illegally as an exchange, broker and clearing agent. The SEC recently filed a lawsuit. Binance Similar charges were filed, but also included allegations that the exchange lied to customers and misdirected capital to segregate investment funds owned by former CEO Changpeng Zhao.
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