Brian Armstrong’s US cryptocurrency exchange sent an email to some users regarding a court subpoena it received from the CFTC regarding rival platform Bybit.
Coinbase, the largest U.S. cryptocurrency exchange, is responding to a subpoena it received from the Commodity Futures Trading Commission (CFTC) in connection with the regulator’s investigation into Bybit, a Dubai-based digital asset trading venue. An email was sent to selected customers.
notice Posted Coinbase customers took to social media to explain that the exchange may submit information about certain accounts and transaction history in accordance with U.S. law.
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 sharing information about your Coinbase account with the Commodity Futures Trading Commission.
Coinbase Email Regarding CFTC-Bybit Subpoena
Last May, Coinbase notified users of its legal requirements to collect customer information and respond to subpoenas issued by law enforcement, regulators and tax agencies.
At the time of this report, Bybit and CEO Ben Zhou had not commented on the development. Bybit is being sued for $953 million by bankrupt cryptocurrency exchange FTX, and Zhou’s company plans to withdraw from the UK market due to new rules on advertising.
Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal have also yet to react to the news, but several cryptocurrency media houses have confirmed its legitimacy.
Coinbase was the subject of an enforcement action by the U.S. Securities and Exchange Commission (SEC), which sued Armstrong’s cryptocurrency exchange in June for allegedly violating federal financial regulations by operating as an unregistered broker, clearinghouse and national trading platform.
The company denied the claims, which led to a lengthy lawsuit with the SEC. Rival exchange Binance faced similar charges from the SEC, CFTC, and Department of Justice, ultimately resulting in a $4.3 billion multi-agency settlement along with a leadership change.