CFTC Subpoenas Cryptocurrency Exchanges In Bitcoin Futures Investigation

- Advertisement -

Bitstamp, Coinbase, itBit, and Kraken were targeted. The future’s looking a bit dim.

Due to suspicions of market manipulation that may impact the final settlement price of CME’s bitcoin futures, the Commodity Futures Trading Commission (CFTC) has reportedly subpoenaed four cryptocurrency exchanges. According to the Wall Street Journal, the regulator demanded that the exchanges – Bitstamp, Coinbase, itBit, and Kraken – provide “comprehensive trading data to assist a probe into whether manipulation is distorting prices” in the bitcoin-linked futures market.

This is a complicated matter because the CFTC has claimed oversight and enforcement authority over cryptocurrency-based financial derivatives like bitcoin futures, but seems to possess only enforcement authority over the cryptocurrency spot markets. The inquiry revealed by the Journal on Friday is distinct from the CFTC-DOJ investigation into bitcoin price manipulation, which ETHNews covered last month.

Although CME requested trading data from the exchanges after its first bitcoin futures contract closed in January, a few of the platforms refused to share the desired information, according to the Journal’s unnamed sources. Later, the exchanges granted a limited request (with the scope of a few hours rather than an entire day’s worth of trades). Also, it appears the data that the exchanges did provide only included select market participants, as opposed to a complete order book. The CFTC was not happy with this lack of transparency, which, it seems, led to the subpoenas.

- Advertisement -

The reported concerns about potential manipulation lend credence to the suggestion that bitcoin futures products were rushed to market. No word yet about the CBOE’s bitcoin futures product.

Matthew is a full-time staff writer for ETHNews with a passion for law and technology. In 2016, he graduated from Georgetown University where he studied international economics and music. Matthew enjoys biking and listening to podcasts. He lives in Los Angeles and holds no value in any cryptocurrencies.

Like what you read? Follow us on X @Bitnewsbot to receive the latest CFTC, cryptocurrency or other Ethereum wallets and exchanges news.



Previous Articles:

- Advertisement -

Latest News

Aave Lab Offers Revenue, New Focus to DAO’s End Feud

Aave Labs has proposed a new framework directing all revenue from Aave-branded products to...

Soldier used military secrets for $150K crypto bets.

An Israeli reserve soldier and a civilian accomplice face charges for allegedly using military...

BitGo, 21Shares Expand ETF Staking & Custody Partnership

BitGo and 21Shares have expanded their partnership to provide custody, trading, and staking services...

North Korean Hackers Use Google’s Gemini AI for Cyber Recon

Google's threat intelligence team observed the North Korean hacking group UNC2970 using the generative...

Binance SAFU Fund Now Holds $1 Billion in Bitcoin

Binance has purchased $305 million in Bitcoin for its user protection fund, bringing its...

Must Read

How to Set Up a Simple Bitcoin Tip Jar for Your Site or Stream

QUICK LINKSWhat a tip jar is, in plain wordsWhat you needBuild a payment link that just worksAdd a QR code that actually scansWhere to...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!