It’s been said that the U.S. Commodity Futures Trading Commission (CFTC) has allegedly served a subpoena to Coinbase, America’s biggest cryptocurrency trading platform.
According to the report, the commodity regulatory body is looking for details concerning the crypto-forecasting marketplace known as Polymarket.
CFTC Subpoenas Coinbase: Implications for Users
Eric Conner, a co-founder of EthHub, announced on Twitter that Coinbase is facing legal issues, as indicated by a customer notice. In this notice, it’s reported that Coinbase has been served a subpoena. The exchange explained that although no immediate action is necessary from users at the moment, they might be compelled to disclose some user account information to the Commodity Futures Trading Commission (CFTC) in the future.
We wanted to let you know that we’ve received a subpoena regarding the case mentioned earlier. The subpoena is asking for general customer information related to your account.
According to reports, Coinbase’s notice to customers states that if no motion to dismiss or other legal paperwork is received by January 15, 2025, they will be required to disclose the requested information. This recent move in the legal process comes after Polymarket, a decentralized prediction market platform, has faced intensified regulatory attention, having previously encountered regulatory action.
It’s important to mention that since 2022, Polymarket has been off-limits to residents from the United States due to a $1.4 million settlement with the CFTC over unregistered derivatives trading operations. However, some US users have found ways around this restriction by utilizing virtual private networks (VPNs).
The subpoena issued by the Commodity Futures Trading Commission (CFTC) to Coinbase has sparked worries about possible repercussions for its users. The platform emphasized that no immediate action is required from users, but the prospect of disclosing user data to the CFTC might cause unease among its clientele. At this point, the CFTC has yet to specify what exact information they are requesting or how they intend to utilize the data in their ongoing investigation.
Currently, Polymarket and Coinbase have yet to offer any public statements concerning the subpoena. Likewise, no immediate response was received from Coinbase when BeInCrypto requested comment. However, this scenario underscores the increasing overlap between cryptocurrency platforms and governmental regulation.
Simultaneously, a subpoena arrives at a time when Polymarket is facing intensifying legal hurdles. In the middle of last November, the FBI conducted a search at the residence of Polymarket’s CEO, Shayne Coplan. During this search, they confiscated Coplan’s phone and other digital gadgets. This search took place shortly after Donald Trump’s win in the 2024 US presidential election.
Looking back, it’s clear that the election served as a major catalyst for Polymarket. As reported by BeInCrypto, the platform’s total bet volume reached an astonishing $3 billion during the election period. Some savvy users even managed to make profits of up to $50 million by accurately predicting Trump’s victory.
The surge of activity on Polymarket has sparked worries about the possibility of manipulation in decentralized prediction markets. After the US election, authorities worldwide, such as France’s Autorité nationale des jeux, are said to have begun examining Polymarket’s operations and ensuring they adhere to local gambling regulations.
Since its beginning, Polymarket has been under increased regulatory examination due to various concerns, while still expanding its popularity on a global scale.
Read More
- Blake Lively Vs Justin Baldoni: Drawing Parallels Between Amber Heard And Blake Lively’s Legal Battles
- NPC PREDICTION. NPC cryptocurrency
- ‘I Just Stopped Him’: Florence Pugh Shares Her Experience of Going Bald For Andrew Garfield Starrer We Live in Time
- Fans Believe that the New ‘Agatha All Along’ Promo Reveals the True Identity of Aubrey Plaza’s Rio Vidal
- ‘What If…?’ Director Reveals He Would’ve Loved to Add Hugh Jackman’s Wolverine to Season 3, But It Was Too Late!
- QANX PREDICTION. QANX cryptocurrency
- ‘It’s Amazing’: Glen Powell, Daisy Edgar-Jones Recall How Steven Spielberg’s ‘Note’ Helped Change Twisters Ending
- Is The Beatles’ Manager Brian Epstein Getting A Biopic Of His Own? Here’s What Report Says
- The Bold and the Beautiful Spoilers: Will Luna Hold Katie Responsible for Poppy’s Arrest?
- Taylor Swift vs. Ariana Grande: What is The Fan War Surrounding Sabrina Carpenter All About, Let’s Find Out
2025-01-09 16:01