It was claimed that the American-based cryptocurrency exchange Coinbase provided information upon request to the Commodity Futures Trading Commission within the scope of the ongoing investigation into the decentralized prediction market platform Polymarket.
Statement from Coinbase
Ethereum $3,303.9 Eric Conner, co-founder of focused website EthHub, wrote on social media platform X that Coinbase notified customers of the CFTC request for information. The email states that the derivatives market regulator has requested general customer information from the Coinbase exchange in connection with its Polymarket investigation.
“CFTC requests customer information from Coinbase vis-à-vis Polymarket.” –Eric Conner
Polymarket surged in popularity during the US presidential election, with its users accurately predicting Donald Trump’s victory. The platform allows users to predict the outcomes of future events by trading shares in USDC.
FBI Raid on Polymarket CEO
In November, the Federal Bureau of Investigation (FBI) raided the home of Polymarket CEO Shayne Coplan over allegations that Polymarket violated a settlement agreement with the CFTC in blocking transactions from U.S.-based users.
“Current officials should do some self-reflection and recognize that adopting more business-friendly, entrepreneurial approaches could change their fortunes in this election.” – Shayne Coplan
Shayne Coplan argued that the FBI’s action was wrong, stating that it was politically motivated. Coplan stated that the sanctions have a negative impact on businesses and new ventures.
Details of how the CFTC’s investigation into Polymarket will proceed and the customer information Coinbase will be required to provide have not yet been disclosed.
On the other hand, this example could be important for how crypto exchanges respond to regulatory demands and the way these processes proceed.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
