CFTC Subpoena: Is Coinbase Handing Over User Data To Hunt Down Bybit?

Crypto exchange Coinbase Global Inc COIN has notified a select group of its users via email about a subpoena it has received from the Commodity Futures Trading Commission (CFTC), requesting detailed information on user accounts and their transaction histories.

This development, shared on X on Monday, led to widespread conjecture that the CFTC's actions might be connected to Coinbase users who have had dealings with Bybit, raising the possibility that the commission is gearing up for potential legal proceedings against the Dubai-based cryptocurrency exchange.

A person familiar with Coinbase's protocol told Benzinga that whenever it is served notice from a regulator, the exchange has a policy to inform its customers.

The email sent to certain Coinbase users stated: “We write to inform you that Coinbase has been served with a subpoena,” and further clarified, “seeking information related to your account and account transaction activity.”

Coinbase, in its communication, also mentioned the possibility of challenging the CFTC's subpoena.

Also Read: Are France, Germany And Italy Blocking AI Protections? Amnesty International Weighs In

As a result, the exchange has not yet shared any user information.

The email assured users, “No action is required from you,” and elaborated, “but Coinbase may respond to the Subpoena unless served before Nov. 30, 2023, with a motion to quash or other objection to the subpoena that has been filed with the Court — including by sending information concerning your Coinbase account to the (CFTC).”

Bybit, established in 2018 by Chinese entrepreneur Ben Zhou, only implemented mandatory know-your-customer (KYC) protocols in May of this year.

The exchange has also attracted regulatory attention in the U.K. and Japan, with financial authorities in both nations issuing stern warnings and calls for regulatory compliance.

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Zinger Key Points