Coinbase to Pay $6.5 Million to Settle CFTC Investigation Over Trading

Coinbase to Pay $6.5 Million to Settle CFTC Investigation Over Trading

Cryptocurrency-exchange operator Coinbase Inc. agreed Friday to pay $6.5 million to settle regulatory claims that it reported misleading information about its trading volumes.

Coinbase, which last year filed plans to go public, resolved the Commodity Futures Trading Commission’s investigation without admitting or denying the regulator’s claims. The outcome clears one cloud hanging over Coinbase as it prepares to become a public company through a direct listing on the Nasdaq Stock Market.

Coinbase issued a statement saying the investigation didn’t allege any harm to customers. “We proactively engaged with the CFTC throughout their investigation, and we believe that our conversations were constructive and contributed to an outcome that is satisfactory for both parties,” the company said.

The enforcement action shows how Wall Street regulators such as the CFTC, which oversees derivatives markets, have moved to police conduct in the new world of cryptocurrencies and digital assets.

Continue reading at wsj.com

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