Coinbase, a prominent cryptocurrency exchange, has reportedly issued a warning to its users regarding a subpoena it received from the United States Commodity Futures Trading Commission (CFTC), as revealed by users on X (formerly Twitter) who posted copies of the message. The CFTC is seeking information related to the activities of the Bybit cryptocurrency exchange.
Recipients of the warning, believed to include Coinbase customers who also utilized Bybit, have speculated on the implications of the subpoena. According to the message dated November 27, Coinbase may be compelled to furnish information about users’ accounts and transaction activities to the CFTC unless the subpoena is overturned by a court on or before November 30.
Bybit, based in Dubai, had earlier stated in its terms of service that it does not provide services in the United States. However, reports suggest that it remains accessible to U.S. users through the use of virtual private networks (VPNs).
Coinciding with Coinbase’s communication, Bybit announced that it has reached a milestone of 20 million users, asserting itself as a “top-three cryptocurrency exchange.” Notably, Bybit had previously announced the implementation of Know Your Customer (KYC) verification for users in July 2021, although the exact date of this enforcement remains unclear. KYC instructions were subsequently posted for customers in September 2022.
The CFTC, positioning itself as a leading enforcement agency in the crypto sector, disclosed that it initiated 47 cases in the digital assets realm during fiscal year 2023, constituting 49% of the filed cases. Among these cases were legal actions against entities such as FTX, Celsius, Voyager Digital CEO Stephen Ehrlich, and Binance.
As of now, neither Coinbase nor Bybit has responded to requests for comment from Cointelegraph.