News

Coinbase Has Denied Allegations From The WSJ

Wall Street Journal reported that Coinbase created a trading group that used $100 million of its funds to trade cryptocurrencies. The exchange has denied allegations from The Wall Street Journal that it engaged in proprietary trading. The company said on September 22 that the WSJ had confused its client-driven activities with proprietary trading.

The Wall Street Journal reported earlier on Sept. 22 that Coinbase formed a trading group with $100 million in corporate cash to trade cryptocurrency.

The company examined the performance of its proprietary trading, according to the article, and those acquainted with the product stated the exchange profited. The exchange generated financing through the sale of a structured note to the financial firm Invesco Ltd. Invesco’s official sources verified the transaction.

Wall Street stated that the exchange hired at least four top Wall Street traders for the Coinbase Risk Solutions department, which traded, staked, and locked up cryptocurrency using the company’s capital.

Coinbase issued a blog post in which it categorically disputed the charges. The exchange, according to the article, does not conduct “a proprietary trading business or act as a market maker.”

Coinbase Risk Solutions is intended to assist institutional investors seeking Bitcoin exposure. According to the business, the purpose of this team is to broaden institutional engagement in web3 beyond Hodling.

According to a Coinbase spokesperson:

“Coinbase does not, and has never, had a proprietary trading business. Any insinuation that we misled Congress is a willful misrepresentation of the facts. Coinbase Risk Solutions was established to facilitate client-driven crypto transactions.”

When the exchange officials testified before Congress last year, they denied that the company engaged in proprietary trading. While Coinbase is not prohibited from participating in speculative trading, there are worries about the hazards.

When a financial business invests its assets and the funds of its clients in the market, there is the risk of a conflict of interest and market manipulation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

1 hour ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

2 hours ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

3 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

3 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

4 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

6 hours ago

This website uses cookies.