As a crypto investor, I’ve heard rumors that my go-to exchange, Coinbase, is under investigation by the Commodity Futures Trading Commission (CFTC). This seems to be related to their involvement with Polymarket, the prediction market platform they host. If true, this could potentially impact my investments on the platform and my overall experience with Coinbase. I’ll keep a close eye on developments in this story.
According to reports, Coinbase received a subpoena from the Commodity Futures Trading Commission (CFTC) regarding the crypto prediction market platform Polymarket, as mentioned in a customer notice dated January 8th.
The news was reported by EthHub co-founder Eric Conner in an X post on Wednesday.
In a recent development, we’re complying with a subpoena regarding the case mentioned earlier. This requires us to provide some of your account information, such as details about your Coinbase account.
Coinbase “may be required” to send user account data to CFTC
Based on what Coinbase has communicated, there’s no immediate action needed from users. However, Coinbase might have to disclose specific account details to the Commodity Futures Trading Commission (CFTC), following a subpoena request.
The situation might not apply if Coinbase isn’t officially served by the end of business on January 15, 2025, and a motion to quash or any legal document is filed which restricts Coinbase from disclosing this information, as stated in the notice.
“The dems crypto pivot truly was something else,” EthHub’s Conner said in a subsequent X post.
What’s wrong with Polymarket?
The Commodity Futures Trading Commission (CFTC) has served a subpoena to Coinbase, as speculation about Polymarket intensifies following the FBI’s raid on the residence of Polymarket CEO Shayne Coplan in November.
Raids occurred a week following the victory of Republican Donald Trump in the U.S. Presidential Election, which took place on November 6th, 2024.
Investors who put their money into cryptocurrencies stand to earn substantial sums by predicting Donald Trump’s election victory on the platform Polymarket. Some individuals have even made over $50 million in profits by wagering on Trump’s success in the presidential race.
Some industry experts have voiced worries regarding the possibility of manipulation in the Polymarket’s decentralized forecasting platform.
On November 7, 2024, it’s said that some international regulatory bodies, including France’s National Gambling Authority (Autorité nationale des jeux), initiated an inquiry into the business practices and adherence to local gambling regulations of Polymarket.
Despite being based in New York, Polymarket has been off-limits for US residents since 2022. This is due to a $1.4 million settlement it reached with the Commodity Futures Trading Commission (CFTC), which accused the company of operating an unregistered derivatives trading platform.
According to Polymarket’s apparent restriction, U.S. users are unable to place wagers on the site. However, some media outlets have hinted that numerous U.S. users bypassed this prohibition through the use of Virtual Private Networks (VPNs).
crypto moon reached out to coinbase and polymarket seeking their comments on the recent subpoena news, however, they didn’t respond by the time the article was published.
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2025-01-09 12:54