U.S. Regulators Eye 'Bybit' as Next Target? Coinbase Summoned Over Bybit Investigation

Uncover the unfolding drama in the crypto world: U.S. regulators possibly targeting Bybit following BINANCE, with Coinbase caught in the crosshairs.

Learn about the CFTC's investigation, Bybit's stance, and what this means for the future of cryptocurrency trading.

Coinbase Receives Subpoena in Bybit-Related Issue

The United States Commodity Futures Trading Commission (CFTC) is rumored to be setting its sights on 'Bybit' as its next target, following a settlement with cryptocurrency exchange BINANCE.

The rumors started circulating after a message purportedly received by some users of the U.S. cryptocurrency exchange 'Coinbase' was posted on platform X.

The message reportedly indicated that "Coinbase has informed its users of receiving a subpoena from the CFTC regarding issues related to Bybit."

According to reports, the CFTC is seeking information about 'Bybit's users,' and unless the court cancels the subpoena by November 30, 2023, Coinbase may be required to submit information about its users’ accounts and trading activities to the CFTC.

Is the Subpoena Aimed at Identifying Illegal Services Offered by Bybit?

Speculation in the cryptocurrency industry suggests that "the subpoena may be aimed at gathering evidence of Bybit's illegal service offerings to U.S. residents."

While Bybit has declared that it does not provide services to U.S. residents, it is reported that U.S. users can access Bybit’s services using a Virtual Private Network (VPN).

If Coinbase submits transaction information of its users to the CFTC and it becomes clear that "these users are Americans trading with Bybit," this could confirm that Bybit is indeed offering services to U.S. residents, potentially serving as evidence.

Currently, the details of the subpoena are unclear, and neither Coinbase nor Bybit have issued any comments.

However, the recent settlement between major cryptocurrency exchange BINANCE and U.S. regulators, resulting in Changpeng Zhao stepping down as CEO, has brought increased attention to future developments in this area.

Furthermore, Bybit has mandated 'Level 1 or higher identity verification' since May this year, preventing unverified users from accessing various services.

It has also announced the termination of service offerings to residents of Canada and the United Kingdom.