A crazy $100 million crypto trade? Most of Coinbase denies

Accusations and denialsrumors travel fast in the cryptosphere, especially when it is the mainstream media that distributes them. But the border between SPOON AND fake news it is often very thin. In the case of recent allegations by the Wall Street Journal (WSJ) vs Coinbase, it’s still hard to tell which side we’re on exactly. Simple Fudd or the discovery of one scandal potential?

Brian Armstrong’s company would have used its own funds to trade crypto?

of various regulators scrutinize very close to the group behind the crypto-stock market Coinbase, especially since its IPO (coin stock). IN Publication As of September 22, the Wall Street Journal accuses Coinbase Global Inc. for the employment of tradesmen. They were busy to negotiate company funds in the cryptocurrency market.

According to “people close to the case” (anonymoustherefore) having spilled the beans to the WSJ, the team of traders in question would have carried out a 100 million dollar crypto trade at the beginning of this year 2022.

Nothing stops him officially for the group that owns the crypto-exchange to trade cryptocurrencies. However, this may raise concerns – if the WSJ claims are true – that Coinbase could potentially trade against its customers.

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Coinbase strikes back and puts the Wall Street Journal back on the ropes

of answer Coinbase’s vicious attack on the WSJ’s anonymous whistleblowers didn’t happen no delay. The same day, in his blogcrypto exchange is held at I clarify things.

It would not be never trading on the company’s own account, but trading activities related to its customers. This customer support would be done through a new small team, created for the occasion and called Coinbase Risk Solutions (CRS).

In addition, Coinbase buys cryptocurrencies on its behalf, but as an investment, in particular for its cash flow. And not for speculative trading, as the Wall Street Journal article implied.

“Unlike many of our competitors, Coinbase does not operate a proprietary trading business. (…) In fact, one of the competitive advantages of our Institutional Prime platform is our trading model as an agency, where we only act on behalf of our clients. Hence, our motives and those of our customers are aligned by design. (…) Coinbase purchases cryptocurrencies from time to time for its own account, including for cash flow and operational purposes. We do not consider this to be proprietary trading, as the objective here is not for Coinbase to profit from short-term increases in the value of the cryptocurrency being traded. »

in summary, “Nothing to report, carry on! » according to Coinbase. Was the famous transaction of 100 million dollars carried out for the account of a rich man institutional client from Coinbase? Maybe, at least if the crypto exchange is to be believed. Otherwise, Coinbase is in a tricky position with regulators on fire the question of setting rewardswhich are also highly sought after by institutional investors.

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