Coinbase Officially Responds To New York’s Attorney Journal’s Ongoing Inquiry
The most well-known company in cryptoverse, Coinbase, has officially responded to New York’s Attorney General Eric Schneiderman’s ongoing inquiry.
Last month, as a part of the proposal to protect consumers of the financial markets, the Attorney General of New York, Eric T. Schneiderman launched the Virtual Markets Integrity Initiative, according to which, the Attorney General’s office sent out an official letter to 13 major cryptocurrency exchange platforms. As many investors rely on these platforms, the initiative sought to bring complete transparency and accountability to the consumers. It aimed to give the average investors a clear picture of the exchange platform’s operations and policies.
Coinbase Chief Legal Officer Mike Lempres addressed this inquiry in a 5-page letter. The letter contains some notable insights into the company’s meteoric growth over the past 18 months. A notable point made in the letter was that the assets kept on Coinbase platform were valued around $150 billion USD.
The company had been infamously accused to have internally assigned itself an $8 billion valuation, which is approximately $6.4 billion above the formal $1.6 billion valuations it received in August 2017 when it closed a $100 million Series D funding round.
The full version of the letter had been transmitted to the AG’s office through an encrypted end-to-end secure file exchange service and requested that the agency provide the data with confidential treatment.
It is to be noted that Coinbase has not provided detailed financial information in the public version of its letter but gave some sneak peaks for its customers.
The representatives of Attorney General’s office will review the responses from all the exchange platforms and compare with other platforms. Further, they will communicate certain relevant information with the public based on their assessment. Another San Francisco based trading platform Kraken stated that it has no plans to follow the DA’s orders as they find such a request “insulting” and below the dignity of DA’s office.
What remains to be an on going situation, there seems to be no signs of Coinbase diminishing as they were recently evaluated upwards of $8Billion dollars and are now opening up a Chicago base as well as acquiring more and more (and more) existing businesses.