Coinbase scandal: the exchange denied the allegations of proprietary trading made against them by the public prosecutor of the State of New York.
According to the prosecution, 20% of all transactions on Coinbase are attributable to the same company. Proprietary trading occurs when a firm invests for its own gain rather than on behalf of its clients
In a post published last night, Coinbase CPO Mike Lempres explained that the company “does engage in proprietary trading. Coinbase does not trade for the benefit of the company on a proprietary basis. In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets). This takes advantage of the liquidity provided by the entire Coinbase ecosystem“.
The US prosecutor, however, explains in a report on “Virtual Markets Integrity” that they are seriously concerned about the current situation of crypto trading because these platforms do not really protect customer funds.
Binance, Kraken and Gate.io are also involved in the scandal.
