Coinbase, the prominent cryptocurrency exchange in the United States, has allegedly contacted an unspecified number of users through email, informing them of a received subpoena and the possible disclosure of customer information to the Commodities Futures Trading Commission (CFTC). While the exact details of the subpoena remain undisclosed, it appears to be linked to a matter involving another crypto exchange, Bybit.
The emails, reviewed by Decrypt, raised concerns among users, many of whom claim they have never used Bybit or created accounts with the exchange. Coinbase, in the notice, mentioned a potential court protest against the subpoena before the apparent November 30 deadline, indicating its intention to work with the CFTC to limit the scope of shared data.
Speculations on social media suggest that the subpoena might target users who utilized both Coinbase and Bybit, potentially as part of an investigation against Bybit. However, the inclusion of users who claim no association with Bybit has sparked privacy concerns and questions about the breadth of the data request.
The CFTC has previously taken legal actions against crypto exchanges for various violations, including failure to implement know-your-customer (KYC) requirements. The recent move comes amid increased regulatory scrutiny on cryptocurrency exchanges and their compliance with existing financial regulations.