Coinbase has successfully managed to settle the lawsuit over trading software against CFTC of a whopping $6.5 million. This public announcement however did not state anything about the other investigations in regard to the Bitcoin Cash and Ethereum which is believed to be going on presently.
The activities of the in-house trading software of Coinbase had been sued by CFTC, The agency has already accused an ex-employee of engaging in the wash trading in regard to Litecoin.
Misleading Software Activity By Coinbase
The Trading Commission of Commodity Futures made an announcement on 19th March, Friday that Coinbase, a crypto giant, has finally agreed on paying the fine of a massive $6.5 million. This is mainly owing to the reason that the crypto firm had to settle several of the allegations related to the way in which they recorded their trades on the trading platform of GDAX from 2015 to 2018.
This platform of GDAX has been rebranded under the name of Coinbase Pro and caters to professional investors and traders. According to the reports of CFTC, GDAX has irresponsibly posted false, incorrect, and misleading reports regarding the digital assets transactions including Bitcoin.
In addition, the agency has remarked that the activity of Replicator and Hedger, the two software of Coinbase has been dubious. CFTC further accused that in certain cases, these software programs have successfully traded that have artificially surged the trading volumes and prices on the GDAX platform.
Even though CFTC avoided taking the name of their employee, the misleading activity concerned took place during the fall season in 2016. Additionally, it also involved Litecoin.
Legally, the case has been settled but the cryptocurrency giant has neither admitted nor denied the allegations put against them.