After allegations of false reporting on stock market size and “closed trading” were settled with the CFTC, reports surfaced yesterday that cryptocurrency exchange giant Coinbase intends to move its share list to next month. The company had previously been expected to be listed on the stock exchange sometime in March.
Yesterday, March 19, the CFTC announced a settlement with Coinbase over allegations that the company inaccurately reported bitcoin trading data and that the employee “traded alone” to create the illusion of volume and demand for Litecoin.
“Reporting false, misleading or inaccurate information about transactions undermines the integrity of the pricing of digital assets,” said Vincent McGonagle, executive vice president of advocacy. “This enforcement action indicates that the Commission will act to protect the integrity and transparency of this information.”
The CFTC order states that from January 2015 to September 2018, the company used two automated trading programs: Hedger and Replicator. While the exchange revealed the use of a trading software, it did not disclose the use of two programs, which often corresponded to the trades.
As a result, the Coinbase API has provided fake trading data to organizations such as the CME Bitcoin Real Time Index and CoinMarketCap, as well as the NYSE Bitcoin Index through Coinbase’s “live feed”.
The CFTC notes that this fake data “has the potential to lead to the perceived volume and liquidity of digital assets, including Bitcoin, that have been false, misleading, or inaccurate.”
Additionally, the announcement indicates that the employee deliberately placed LTC / BTC matching deals over a period of six weeks in 2016 to create the illusion of liquidity and demand for LTC. The Commodity Futures Trading Commission (CFTC) held Coinbase “responsible” for these fraudulent trades.
The total penalty for these expenses is $ 6.5 million.
Postponement of direct entry
After settling with the CFTC late last night, Bloomberg said the exchange had postponed direct listing until next month.
Citing “people with knowledge of the matter,” Bloomberg said plans for a March initial public offering on US stock exchanges were “welcome,” and no further details were provided.
Earlier this month, Bloomberg reported, citing anonymous sources, that Justin Sun had won Christie’s auction of nearly $ 70 million to buy Beeple NFT, which later turned out to be fake, and that Binance is undergoing a CFTC investigation for allowing US residents to host illegal dealers. Binance CEO Changpeng Zhao categorically denied this message.