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 2.22% Bitcoin / USD BTCUSD $ 42,840.39
$951.062.22% Volume 17.14 b Change $951.06 Open $42,840.39 Circulating 18.94 m Market Cap 811.2 b 2 w SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 3 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum and Litecoin LTC 2.50% Litecoin / USD LTCUSD $ 141.04
$3.532.50% Volume 603.79 m Change $3.53 Open $141.04 Circulating 69.46 m Market Cap 9.8 b 4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card 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.
“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.