- Coinbase received a subpoena from the CFTC regarding crypto exchange Bybit, requesting information on certain customer accounts by November 30th.
- This subpoena is the latest example of regulators like the CFTC ramping up oversight of the crypto industry through actions like compelling information via subpoenas.
- The subpoena shows enforcement actions will likely persist as the crypto industry matures, even if it means companies like Coinbase sharing data on their own users.
Coinbase has received a subpoena from the Commodity Futures Trading Commission (CFTC) regarding crypto exchange Bybit, according to emails sent by Coinbase to some of its users. The subpoena requests information on certain customer accounts.
Details of the Subpoena
According to the emails received by Coinbase customers, the subpoena requests information to be sent to the CFTC by November 30th unless a motion is filed to quash it. The emails state that no action is required by the recipients, but that Coinbase may provide information about their accounts in response.
Regulator Scrutiny
This subpoena is the latest example of regulators like the CFTC ramping up oversight of the crypto industry. The CFTC has powers to compel information through subpoenas as part of its investigations. Laws also require Coinbase to collect certain information in response to legal requests.
Other crypto companies have also received subpoenas lately. The SEC sent one to PayPal regarding its USD stablecoin. Coinbase and Binance were both sued by the SEC earlier this year for allegedly operating illegally as exchanges.
Conclusion
The subpoena Coinbase received related to Bybit shows regulators are continuing to investigate potential wrongdoing or risks in the crypto space. As the industry matures, enforcement actions like these subpoenas are likely to persist. Companies like Coinbase are obliged to comply, even if it means sharing data on their own users.
