Coinbase Notifies Users of Subpoena Linked to Bybit

Coinbase has informed certain users of a subpoena it received from a U.S. regulator regarding crypto exchange Bybit, as revealed in emails posted on social media. The authenticity of the emails was confirmed by a reliable source as The Block reports.

The email assures users that no action is needed, but Coinbase may respond to the subpoena by November 30, 2023, with a motion to quash or other objections filed with the court. The Commodity Futures Trading Commission (CFTC) is involved, but both the CFTC and Bybit declined to comment. Bybit, led by CEO Ben Zhou, is based in Dubai.

The CFTC has investigative powers, including subpoenas, and Coinbase is required to collect information under relevant laws. The exchange emphasized its commitment to comply with legal obligations. Other federal agencies have also issued subpoenas on crypto-related matters, such as PayPal's revelation of a subpoena from the Securities and Exchange Commission concerning the PayPal USD stablecoin.

Coinbase itself faced SEC regulatory scrutiny in June for allegedly operating illegally, similar to charges against Binance, which also included allegations of misleading customers and misdirecting capital.

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The Block