Coinbase Settles ‘Misleading Transaction Data’ Charges with the CFTC for $6.5 Million

The settlement, for the charges also including “wash trading,” comes ahead of Coinbase’s stock market listing with a valuation of $68 billion, which makes it more valuable than Nasdaq and NYSE’s ICE.


Coinbase has paid $6.5 million to settle its charges of reporting misleading transaction data, potentially inflating the trading volume on its professional GDAX platform, with the U.S. Commodity Futures Trading Commission (CFTC).

CFTC reported this week that it also fined the leading US cryptocurrency exchange for “wash trades” in Bitcoin BTC -4.00% Bitcoin / USD BTCUSD $ 41,259.23
-$1,650.37-4.00%
Volume 31.26 b Change -$1,650.37 Open $41,259.23 Circulating 18.83 m Market Cap 776.86 b
2 h Fintech Revolut Is Launching its Own Token, Which Will Be Earned By Users 2 h Miami Mayor Luring Crypto Miners With “Very Inexpensive” Nuclear Power 3 h 32% of El Salvador Population Actively Using Bitcoin Wallet, Lightning Network Capacity Surpasses 2,900 BTC
and Litecoin LTC -3.14% Litecoin / USD LTCUSD $ 143.78
-$4.51-3.14%
Volume 2.68 b Change -$4.51 Open $143.78 Circulating 66.75 m Market Cap 9.6 b
4 h China Ban: TradingView & Data Sites Inaccessible, Alibaba Stops Miners & Crypto Sales, “Complete Shutdown” for SparkPool Users 6 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 6 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End
by a former Coinbase employee on GDAX.

“The settlement order today does not include any finding of harm to any Coinbase customer,” a Coinbase spokesman said.

“While Coinbase neither admits nor denies the CFTC’s findings, we firmly believe that Coinbase has always aimed to create a reliable and secure trading environment for the benefit of our customers.”

According to the agency, between January 2015 and September 2018, two trading programs, both operated by the exchange, matched orders with one another.

Though GDAX disclosed that Coinbase was trading on GDAX, it failed to disclose that the exchange was operating more than one trading program and through multiple accounts, the CFTC said.

“Transactional information of this type is used by market participants for price discovery … and potentially resulted in a perceived volume and level of liquidity of digital assets, including bitcoin, that was false, misleading, or inaccurate,” the CFTC added.

The settlement comes ahead of the company's planned direct listing with a valuation of $68 billion based on private market transactions, as stated by the company on Wednesday.

This valuation is up from over $8 billion during its last private fundraise in 2018, making it more valuable than the New York Stock Exchange parent Intercontinental Exchange Inc (ICE), the London Stock Exchange, and Nasdaq, and just $4 billion short of near CME Group.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide