{"id":566148,"date":"2021-03-20T12:32:20","date_gmt":"2021-03-20T09:32:20","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=566148"},"modified":"2021-03-20T12:32:20","modified_gmt":"2021-03-20T09:32:20","slug":"coinbase-ordered-to-pay-6-5m-by-the-cftc-for-wash-trading","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/coinbase-ordered-to-pay-6-5m-by-the-cftc-for-wash-trading\/","title":{"rendered":"Coinbase Ordered to Pay $6.5M by the CFTC for Wash Trading"},"content":{"rendered":"
Summary:<\/strong><\/p>\n The Commodity Futures Trading Commission has ordered Coinbase<\/a> to pay a penalty of $6.5 million for what the CFTC<\/a> describes as ‘reckless false, misleading, or inaccurate reporting as well as wash trading by a former employee on Coinbase’s GDAX platform’.<\/p>\n According to the settlement<\/a>, Coinbase is also ordered to cease and desist from any further violations of the Commodity Exchange act or additional CFTC regulations. The Acting Director of Enforcement at the CFTC, Vincent McGonagle, pointed out that the actions sent a clear message to other platforms in the digital asset ecosystem.<\/p>\n With respect to a time frame as to when the acts were committed, the CFTC<\/a> narrowed it down to between January 2015 and September 2018 when two automated trading programs were used on Coinbase as described below.<\/p>\n During this period, Coinbase operated two automated trading programs, Hedger and Replicator, which generated orders that at times matched with one another. The GDAX Trading Rules specifically disclosed that Coinbase was trading on GDAX, but failed to disclose that Coinbase was operating more than one trading program and trading through multiple accounts.<\/p><\/blockquote>\n\n
Wash Trading on Coinbase Happened Between January 2015 and September 2018<\/h2>\n