Coinbase accused of cryptocurrency fraud

The cryptocurrency exchange Coinbase has been accused of private trading in digital assets. The company denies the allegations, but emphasizes that its competitors in the industry are doing the same. A Wall Street Journal report published on Thursday claims that Coinbase hired traders to use the company’s funds to trade and bet on cryptocurrencies for profit. According to the report, $ 100 million of Coinbase’s funds were used in a test trade that unnamed employees of the crypto exchange called «their own.» In response to the media accusation, Coinbase published a blog post refuting the claims. The cryptocurrency exchange said that the WSJ report confuses «customer-driven activities» with a trading offer.

«Unlike many of our competitors, Coinbase does not operate its own trading business and does not act as a market maker ,» the company wrote, without specifying which competing exchanges it believes are doing so.

Coinbase emphasized that the crypto exchange complies with all regulatory guidelines from supervisory authorities that create an optimal environment for the promotion of the crypto industry and reliably protect the rights of retail investors.

Recently, the cryptocurrency exchange launched an app to check cryptocurrency-friendly politicians. The tool shows how different members of the US Congress rate their «cryptocurrency sentiment,» which can range from «very positive» to «very negative.» The app’s scores are partially based on data from the Crypto Action Network, which analyzes members of Congress from their media statements, legislative records, statements about cryptocurrency sponsorship, and more.