The cryptocurrency exchange Coinbase has informed some of its users about a court subpoena received from the U.S. Commodity Futures Trading Commission (CFTC). It was revealed that this subpoena is closely related to the legal investigation being conducted on Dubai-based crypto exchange Bybit.
Blockchain journalist and cryptocurrency expert Colin Wu claimed that after Binance, the CFTC has turned its attention to Bybit. Following the resolution of issues with Binance, Wu noted that the CFTC has had difficulties in reaching Bybit employees in the United States and has attempted to access user information through Coinbase. Transactions from Bybit to Coinbase, especially those made by American users, are being examined to check for any regulatory violations in serving U.S. customers.
Bybit is known as one of the most widely used and powerful crypto derivatives trading platforms in the market. It also holds a significant share in the global crypto derivatives trading market.
The CFTC is currently examining transactions between Bybit and Coinbase, particularly those concerning American investors. If violations are found, the crypto derivatives trading platform could face serious issues. This situation indicates that U.S. federal regulators are targeting another major cryptocurrency exchange following the recent Binance incident.
On the other hand, earlier this month, Bybit received a special ‘AA’ rating for both spot and derivatives trading categories in the CCData Crypto Exchange Benchmark Report. This recognition reflects the crypto exchange’s commitment to excellence, performance, and high security standards.
As stated in its own enforcement guidelines, the CFTC has the authority to conduct investigations using tools such as voluntary disclosures and court subpoenas. Even in cases involving a court subpoena, Coinbase is required to collect information in compliance with legal requirements. Coinbase stated that it can access, read, protect, and share information when it reasonably believes it to be necessary for complying with laws, legal obligations, regulations, law enforcement, government and other legal requests, court orders, or tax authorities.