CFTC’s Request for Coinbase User Data Linked to Bybit Investigation – What’s Going On?
Coinbase users are reportedly receiving emails notifying them that their customer information might be shared with the US Commodities Futures Trading Commission (CFTC) following a subpoena served to Coinbase.
While the exchange has not publicly commented on the matter, the legal order appears to be related to an investigation involving Bybit, a Dubai-based crypto exchange founded by Ben Zhou.
Judging from screenshots of the email shared by Coinbase users on X, the exchange mentioned a possible protest against the subpoena in court before a November 30 deadline.
CFTC Subpoena to Coinbase In The Matter Of Bybit Fintech Ltd. and Ben Zhou. @coinbase & @Bybit_Official pic.twitter.com/uJWe1urBzi
— Ƀitcoin Chris (@CryptoChrisG) November 27, 2023
Despite this, a report from Decrypt citing unnamed sources have suggested that Coinbase is indeed working with the CFTC to determine the data to be shared, aiming to limit the scope as much as possible.
On X, some Coinbase users speculated about being targeted by the federal government, suggesting that only those using both Coinbase and Bybit might be affected.
“Anyone who ever sent from bybit to crimebase got that email. Probably the cftc fishing for burger users to establish jurisdiction,” one user said.
Notably, however, multiple users who claimed to have never used Bybit or created accounts with the exchange have also received the subpoena notice emails from Coinbase, according to Decrypt’s sources.
Coinbase and the CFTC have still not commented publicly on the matter.
The CFTC has previously taken legal action against Binance for various violations, including failure to implement know-your-customer (KYC) requirements and operating illegal digital assets derivatives exchanges.
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