Cryptocurrency exchange Coinbase has notified its customers that it received a request from the U.S. Commodity Futures Trading Commission (CFTC) for client data, according to Ethereum observer Eric Conner.
Biden's CFTC is subpoenaing customer info from @coinbase in their case against @Polymarket pic.twitter.com/YlCdUPwHs7
— eric.eth (@econoar) January 8, 2025
In a message sent to affected users, the exchange stated that the Commission issued a formal demand for “general information” pertaining to certain accounts. Based on the email’s subject line, the request is linked to the investigation into the betting platform Polymarket, which began in late 2021.
Polymarket was accused of illegally offering swaps and binary options to U.S. customers. In January 2022, the platform settled the dispute, paying a $1.4 million penalty.
FBI Involvement In 2024, the FBI became involved, showing heightened interest in the betting platform. On November 12, law enforcement searched the apartment of Polymarket CEO Shane Coplan and seized his electronic devices. Media reports linked these actions to a U.S. Department of Justice probe, suspecting Polymarket of unauthorized service to U.S. residents.
Coinbase Transparency Report In its November 2024 transparency report, Coinbase emphasized that it carefully reviews government data requests and provides only strictly necessary information.
“We aim to narrow overly broad or undefined requests. […] In some cases, we may refuse to disclose information altogether,” the company stated.
Where possible, Coinbase shares only aggregated user activity details without attaching personal data.
Context
- Over the course of 2024, the CFTC has imposed and recovered a record $17.1 billion in fines and other damages.
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