Coinbase has reportedly pushed back its much-awaited public debut on Nasdaq by a couple of weeks to April in the wake of CFTC’s $6.5 million fine for wash trading charges. The US-based crypto exchange is currently under multiple investigations for its earlier misconduct. People aware of the matter informed that the directors of the company and former employees are cooperating with the investigation.
Coinbase was fined for wash trading from January 2015 to September 2018.
The US-based crypto exchange Coinbase was fined for false, misleading, or inaccurate reporting and wash trading from January 2015 to September 2018. Acting Director of Enforcement Vincent McGonagle said that reporting false, misleading, or inaccurate transaction information undermines digital asset pricing integrity. This enforcement action sends the message that the Commission will act to safeguard the integrity and transparency of such information.” CFTC claimed Coinbase during that period made use of two automated trading programs Hedger and Replicator, which used to match orders on each other’s order book to show an inflated trading volume.
Coinbase will postpone its listing until April.
The ongoing investigation into the US crypto exchange by CFTC for its earlier conducts, including the listing of BCH, Ethereum-related events, liquidity market making, and so on. Industry inside also believes Coinbase could be the first among many, impacting the public debut of several crypto companies. Coinbase was all set to make its public debut in the coming weeks, having listed nearly 115 million of its stocks on Nasdaq just a couple of days back. However, the ongoing investigation and a recent fine have pushed the listing a couple of weeks further. Many believe that the CFTC’s action could also affect other crypto companies planning to go public.