CFTC Fines Coinbase $6.5M Over ‘Reckless’ Reporting

Law360 (March 19, 2021, 11:02 PM EDT) — The Commodity Futures Trading Commission on Friday ordered Coinbase Inc. to pay $6.5 million to settle charges against the cryptocurrency exchange for “reckless, false, misleading, or inaccurate reporting” as well as so-called wash trading by a former employee on its platform.

The activity in question occurred several years ago, and the order requires Coinbase to cease and desist any further violations of the Commodity Exchange Act or CFTC regulations.

“Reporting false, misleading, or inaccurate transaction information undermines the integrity of digital asset pricing,” said acting CFTC Director of Enforcement Vincent McGonagle in a statement. “This enforcement action sends the message that…

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