Coinbase has reportedly been served with a subpoena by the United States Commodity Futures Trading Commission (CFTC), as indicated by users on X (formerly known as Twitter) who shared copies of the notification. The CFTC is seeking details about the Bybit cryptocurrency exchange.
According to the speculation among recipients, it appears that the subpoena may target Coinbase customers who have also used Bybit. Per the message dated Nov. 27, Coinbase might have to disclose information regarding these users’ accounts and transaction activities to the CFTC, unless a court intervenes to reverse the subpoena by Nov. 30.
Bybit, a Dubai-based exchange, declared in its terms of service earlier this year that it does not operate in the United States. However, reports suggest that the platform can still be accessed from the U.S. using a virtual private network (VPN).
Coinciding with Coinbase’s announcement, Bybit revealed that it had reached a milestone of 20 million users, positioning itself as a “top-three cryptocurrency exchange.” The exchange emphasized its commitment to prudent risk management and robust Anti-Money Laundering (AML) compliance, noting its acquisition of licenses in the UAE, Kazakhstan, and Cyprus.
In July 2021, Bybit announced plans to implement Know Your Customer (KYC) verification for its users, though the exact implementation date remains unclear. The exchange provided KYC guidelines to its customers in September 2022. Additionally, Bybit announced its withdrawal from the UK market in September, in response to new regulations set by the Financial Conduct Authority, effective from October. The exchange also removed two Russian banks under sanctions from its payment options in August.
The CFTC, in its fiscal year 2023 case roundup, positioned itself as the leading enforcement agency in the cryptocurrency sector. The commission initiated 47 cases related to digital assets during this period, accounting for 49% of its total caseload. Notable cases included actions against FTX, Celsius, Voyager Digital CEO Stephen Ehrlich, and Binance.
As of the latest updates, neither Coinbase nor Bybit had responded to requests for comments from Cointelegraph.
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