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Coinbase receives CFTC subpoena, regulatory focus on Bybit?

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Coinbase receives CFTC subpoena, regulatory focus on Bybit?

According to an email sent to users, Coinbase has received a subpoena from the CFTC, but it appears that the CFTC is targeting the exchange Bybit.

Coinbase Receives CFTC Subpoena

According to a tweet shared by user @CryptoChrisG, Coinbase has notified users via email:

This is to inform you that Coinbase has received a subpoena regarding the above matter, requesting the disclosure of transaction activity information related to your account. You are not required to take any action, but unless a motion to quash or other objection is received by November 30th of this year, Coinbase may comply with the subpoena, including providing your account information to the CFTC.

Is CFTC Investigating Bybit?

Foreign media outlets The Block and Decrypt both point out that Coinbase's email was only sent to users involved with the Bybit exchange, and sources have confirmed the authenticity of the email.

Twitter user @napgener stated that users who sent assets to Coinbase through the Bybit exchange would receive this email.

The CFTC has not responded to this, while Bybit has declined to comment.

Coinbase Still in Legal Battle with SEC

In its privacy policy, Coinbase mentions that it may access, read, retain, and disclose user-related information when necessary to comply with legal obligations, government and other legal requests, court orders, or disclosures to tax authorities.

Both Binance and Coinbase are involved in civil lawsuits with the SEC. While Coinbase does not seem to be under investigation by the Department of Justice like Binance, the legal battle has been ongoing for several months.

SEC Lawsuit Against Coinbase Summary｜Pledged services are problematic, more unregistered securities than Binance, stock price drops by 20%