- The CFTC has subpoenaed Coinbase.
- The subpoena is in relation to an inquiry into crypto exchange Bybit.
- What the CFTC is investigating remains unclear.
Coinbase, the largest crypto exchange in the U.S. by trade volume, has revealed the Commodity Futures Trading Commission (CFTC) subpoenaed it in a matter involving Bybit and its co-founder and CEO Ben Zhou.
Founded in 2018, Bybit is a cryptocurrency exchange based in Dubai, with operational licenses listed in the UAE, Cyprus, and Kazakhstan. As an unregulated crypto platform, Bybit has no ties with the U.S.
CFTC Inquiry on Bybit
In an email sent to its customers on November 27 and obtained by DailyCoin, Coinbase stated that the CFTC’s subpoena seeks information on its users’ accounts and their transaction activity.
While the email doesn’t provide details on what the derivatives market watchdog might be probing, Coinbase urged its users to remain calm as no action was required from them. The exchange further noted that it might respond to the CFTC’s request before November 30 with a “motion to quash or “other objection to the subpoena.”
But even as dark clouds gathered around Bybit, evident by a possible ongoing probe into whether it violated any laws in the U.S., the exchange announced a new milestone on November 28 ahead of its 5th anniversary in December.
Bybit Users Surge as CFTC Probe Continues
In a press release shared Tuesday, Bybit announced that the number of registered users on its platform has surpassed 20 million, signaling the “trust and confidence” the global crypto community places in the exchange.
The exchange attributed its rapid growth to various factors, including a thriving copy-trading community, prudent risk management, and enhanced anti-money laundering (AML) compliance.
Read why Coinbase is eyeing Ireland for EU expansion:
Coinbase Targets Ireland as Preferred Hub for EU Expansion
Stay updated on why FTX recently sued Bybit:
FTX Sues ByBit for $953M in Fraudulent Withdrawals