In a Friday statement released by Commodity Futures Trading Commission(CFTC) has
said that cryptocurrency exchange platform Coinbase has paid $6.5 million
dollars to settle regulator’s claims alleging misleading transaction of data.
According to the CFTC Coinbase has mislead traders through its two trading
programs “misleading, falsifying and delivering inaccurate reports concerning
transaction in digital assets” in its trading app called Coinbase Pro.
They have also been fined “wash trades” on Litecoin cryptocurrency and bitcoin
which was conducted by their former employees on their Coinbase GDAX platform.
Wash trads create false appearance on trading volume hence they are banned.
A Coinbase spokesperson said in a statement emailed to The Verge that it did not
admit or deny the CFTC?s charges, and had ?proactively engaged with the CFTC?
over the course of its investigation. The statement notes that the settlement
order ?does not include any finding of harm to any Coinbase customer.? The
company says it ?firmly believe[s] that Coinbase has always aimed to create a
reliable and secure trading environment for the benefit of our customers.? – The
Coinbase had 43 million verified users at the end of 2020, with a total of $90
billion of assets held in trust. Since its founding in 2012 as a platform for
bitcoin trading, Coinbase has handled some $456 billion of transactions. Last
year, it had revenue of $1.2 billion, turning a profit of $322 million.