Following $6.5 million CFTC fine, Coinbase delays direct stock listing

CoinTelegraph

After settling charges of improper reporting of exchange volume and “self-trading” with the CFTC yesterday, reports have emerged that cryptocurrency exchange giant Coinbase is set to push back its stock listing to next month. The company had previously been expected to go public some time in March. 

Yesterday, March 19 the Commodity Futures Trading Commission announced a settlement with Coinbase over charges that the company inaccurately reported trading data on Bitcoin, and that an employee “self-traded” to create the illusion of volume and demand for Litecoin.

How To Get Free Crypto  

“Reporting false, misleading, or inaccurate transaction information undermines the integrity of digital asset pricing,” said Acting Director of Enforcement Vincent McGonagle. “This enforcement action sends the message that the Commission will act to safeguard the integrity and transparency of such information.”

The CFTC order says that between January 2015 and September 2018 the company operated two automated trading programs, Hedger and Replicator. While the exchange disclosed the use of a trading program, they did not reveal that they were using two that often matched trades.

As a result, the Coinbase API delivered fraudulent trading data to entities such as the CME Bitcoin Real Time Index, and CoinMarketCap, as well as NYSE Bitcoin Index via “direct transmission” from Coinbase.

The CFTC notes that this falsified data “potentially resulted in a perceived volume and level of liquidity of digital assets, including Bitcoin, that was false, misleading, or inaccurate.”

Coinbase Banner  

Additionally, the announcement notes that an employee intentionally placed matching LTC/BTC trades during a six-week period in 2016 to create the illusion of liquidity and demand for LTC. The CFTC found Coinbase “vicariously liable” for these fraudulent trades.

The total penalty for these charges is $6.5 million.

IPO Delayed

Following the settlement with the CFTC, a report late last night from Bloomberg says that the exchange has delayed their direct stock listing to next month. 

Citing “people familiar with the matter,” Bloomberg said that the plans for a March stock offering on American exchanges has “slipped,” and no further details were provided.

Earlier this month, Bloomberg cited anonymous sources to report that Justin Sun had won the nearly $70 million Christie’s auction for a Beeple NFT, which later proved to be false, as well as that Binance was under investigation by the CFTC for allowing US residents to place illegal trades. Binance CEO Changpeng Zhao vigorously denied the characterization of the report.

FreeBitcoin Banner  

Go to Source
Author: Andrew Thurman


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.