Binance breathes a sigh of relief as another exchange picks up some of the ‘FUD’ from Crypto Twitter.
In the wake of its November 2022 bankruptcy filing, cryptocurrency exchange FTX is pursuing clawbacks from Bybit, alleging that the exchange facilitated illegal trades by FTX customers. These trades, according to FTX, involved wash trading, market manipulation, and other illicit activities.
FTX is seeking to recover billions of dollars from Bybit, arguing that the exchange bears responsibility for the losses incurred by FTX customers due to these illegal trades.
Bybit, however, vehemently denies any wrongdoing, maintaining that it has consistently adhered to all applicable laws and regulations. The exchange has also assured cooperation with the CFTC’s ongoing investigation.
Meanwhile, Coinbase has notified its customers of the possibility of being subpoenaed by the CFTC in connection with its probe into Bybit. While emphasizing that it is not the target of the investigation, Coinbase has pledged cooperation with the CFTC.
The CFTC’s investigation into Bybit centers on potential violations of the Commodity Futures Trading Act. While no charges have been filed against Bybit to date, the possibility remains.
The CFTC’s investigation could have far-reaching consequences for the cryptocurrency industry. If Bybit is found to have violated the law, the CFTC could impose fines or other penalties on the exchange. Additionally, the investigation could prompt changes in how cryptocurrency exchanges operate.
FTX’s pursuit of clawbacks from Bybit and Coinbase’s warning to its customers represent significant developments in the cryptocurrency landscape. These developments could have a profound impact on the industry, and investors should remain informed about their ongoing implications.
