Coinbase has alerted some users about a subpoena it received from a US regulator involving crypto exchange Bybit, according to emails sent by the exchange that were posted on social media.
A person familiar with the matter confirmed the authenticity of the emails in a message sent to The Block.
“No action is required on your part, but Coinbase may respond to the subpoena unless it is served before November 30, 2023 with a motion to quash or other objection to the subpoena that has been filed with the Court, including by sending information about your Coinbase account to the Commodity Futures Trading Commission,” the email said.
The CFTC did not respond to a request for comment and Bybit declined to comment. Bybit, with CEO Ben Zhou at the helm, is headquartered in Dubai.
Regulator scrutiny
The CFTC has certain powers to conduct investigations, including through voluntary disclosures and subpoenas, according to its enforcement manual. Coinbase is also required by law to collect information, including matters related citationsthe exchange said in a post in May.
“We may access, read, preserve and disclose information when we believe it is reasonably necessary to comply with the law, legal obligations, regulations, law enforcement, governmental and other legal requests, court orders or for disclosure to tax authorities.” Coinbase said.
Other federal agencies have requested subpoenas on cryptocurrency-related issues. Payments giant PayPal said earlier this month that it received a citation from the Securities and Exchange Commission regarding the PayPay USD stablecoin.
Coinbase itself has faced regulatory scrutiny from the Securities and Exchange Commission after it was defendant in June for allegedly illegally operating as a stock exchange, broker and clearing agency. Shortly before, the SEC sued binance for similar charges, but also included allegations that the exchange lied to clients and misdirected capital to separate investment funds owned by former CEO Changpeng Zhao.
