Coinbase denies The Wall Street Journal’s proprietary trading allegations
coinbase denies petition from wall street journal You are trading on your own account.
The exchange announced on September 22nd that WSJMore confused customer-driven activity with proprietary trading.
Proprietary Trading Claims
of journal report On September 22, Coinbase revealed that it had created a trading group to trade cryptocurrencies using $100 million in company funds.
According to the report, the exchange tested the effectiveness of its own trades, and people familiar with the product claimed the exchange turned a profit.
Coinbase raised funds using structured notes sold to investment firm Invesco Ltd. Official Invesco sources have confirmed the deal.
Wall Street has reported that Coinbase has hired at least four senior Wall Street traders for its Coinbase Risk Solutions Group.
People familiar with the matter claimed that the Risks Solution Unit was conducting transactions on behalf of customers and using Coinbase cash.
The division’s creation reportedly included key Coinbase executives such as Chief Financial Officer Alecia Haas and Head of Institutional Sales, Trading, Custody, and Prime Services Brett Tesipol. was involved.
Coinbase Denies Allegations
Coinbase has published a blog post, denying the allegations outright.
According to the post, Coinbase does not “act as its own trading business or market maker.”
The company says Coinbase Risk Solutions is designed to help institutional investors seeking exposure to cryptocurrencies. The company says the team’s goal is to expand institutional participation in web3 beyond Hodling.
A Coinbase spokesperson told the WSJ:
“Coinbase has never run a trading business of its own. was established to do so.”
Coinbase executives denied owning a trade when they appeared before Congress last year.
Although there are no restrictions on Coinbase engaging in speculative transactions, there are concerns about risks.
Conflicts of interest and market manipulation are possible when a financial institution puts its own funds or the funds of its clients into the market.
