Coinbase scandal, the exchange accused of proprietary trading
Coinbase scandal, the exchange accused of proprietary trading
Crypto

Coinbase scandal, the exchange accused of proprietary trading

By Amelia Tomasicchio - 20 Sep 2018

Chevron down

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.

 

Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for Cointelegraph and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist. She is also a marketing teacher at Digital Coach in Milan and Business Developer at Huobi for the Italian market.

We use cookies to make sure you can have the best experience on our site. If you continue to use this site we will assume that you are happy with it.