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Coinbase denies The Wall Street Journal’s proprietary trading allegations

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Coinbase denies The Wall Street Journal’s proprietary trading allegations

Coinbase denies The Wall Street Journal’s proprietary trading allegations Oluwapelumi Adejumo · 3 seconds ago · 2 min read

Wall Street Journal reported that Coinbase created a trading group that used $100 million of its funds to trade cryptocurrencies.

2 min read

Updated: September 22, 2022 at 4:23 pm

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Cover art/illustration via CryptoSlate

Coinbase has denied allegations from The Wall Street Journal that it engaged in proprietary trading.

The exchange said Sept. 22 that the WSJ  had confused its client-driven activities with proprietary trading.

Proprietary trading allegation

The Journal reported earlier on Sept. 22 that Coinbase created a trading group that used $100 million of the company funds to trade cryptocurrencies.

According to the report, the exchange tested the effectiveness of its proprietary trading, and people familiar with the product claimed the exchange made profits.

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Coinbase raised funds using a structured note sold to the investment firm, Invesco Ltd. Official sources at Invesco confirmed the deal.

Wall Street reported that Coinbase recruited at least four senior Wall Street traders for the Coinbase Risk Solutions group, which used the company’s fund to trade, stake, and lock up cryptocurrencies.

People familiar with the matter insisted that the Risks Solution Unit was trading for clients and using Coinbase’s cash.

Coinbase key executives like the Chief Financial Officer Alesia Haas and head of institutional sales, trading, custody, and prime services, Brett Tejpaul, were reportedly involved in the creation of the unit.

Coinbase denies allegations

Coinbase published a blog post where it outright denied the allegations.

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According to the post, Coinbase does not do “a proprietary trading business or act as a market maker.”

The firm said that its Coinbase Risk Solutions is designed to help institutional investors seeking crypto exposure. The firm stated that the goal of this team is to expand institutional participation in web3 beyond Hodling.

A Coinbase spokeswoman told WSJ:

“Coinbase does not, and has never, had a proprietary trading business. Any insinuation that we misled Congress is a willful misrepresentation of the facts. Coinbase Risk Solutions was established to facilitate client-driven crypto transactions.”

Coinbase executives had denied that it carried out proprietary trading when they appeared before Congress last year.

While there are no restrictions on Coinbase from engaging in speculative trading, there are concerns about the risks.

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There is the possibility of conflict of interest and market manipulation when a financial firm invests its funds and clients’ money in the market.

Alladin

A Recent SEC Filing Shows The World’s Largest Asset Manager Blackrock Plans To Launch A Metaverse ETF

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A Recent SEC Filing Shows The World’s Largest Asset Manager Blackrock Plans To Launch A Metaverse ETF

According to a recent filing, Blackrock, the multi-national investment company based in New York City and the world’s largest asset manager, has plans to create a new exchange-traded fund (ETF) based on metaverse companies. The fund — dubbed the Ishares Future Metaverse Tech and Communications ETF — will track metaverse firms with exposure to virtual reality, non-fungible tokens (NFTs), augmented reality, and game-centric finance (gamefi) applications.

ETF Filing Shows Blackrock Plans to Launch a Metaverse Exchange-Traded Fund

The world’s largest asset manager by assets under management (AUM), Blackrock, has been investing more energy into the digital asset and blockchain space in recent times. On Friday, Bloomberg’s Katherine Greifeld and Vildana Hajric first reported on the U.S. Securities and Exchange Commission (SEC) filing for Blackrock’s new ETF called the Ishares Future Metaverse Tech and Communications ETF.

The news follows the recent launch of the Ishares Blockchain Technology UCITS ETF, and in August Blackrock partnered with Coinbase to provide clients with access to crypto assets. Hajric’s and Greifeld’s report highlights a filing submitted on Thursday, September 29. The reporters note that the new metaverse ETF doesn’t have an assigned ticker yet.

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The latest Blackrock metaverse ETF could include firms exposed to “virtual platforms, social media, gaming, digital assets, [and] augmented reality,” the report adds. Blackrock’s chief executive officer Larry Fink remarked last year, that as far as bitcoin is concerned, he’s “more on the Jamie Dimon camp.”

At the time, however, Fink further remarked that he envisioned “a huge role for a digitized currency” and said he believes that it’s “going to help consumers worldwide, whether it’s bitcoin or something else.” On the other hand, Blackrock’s Rick Rieder, the chief investment officer (CIO) of the asset manager, has said bitcoin and cryptocurrencies are durable assets.

“I still think bitcoin and crypto are durable assets,” Rieder explained during an interview with Yahoo Finance Live. “It’s a durable business, but there was so much excess built around it,” Rieder added during the interview.

Furthermore, just after the company partnered with Coinbase, Blackrock launched a bitcoin private trust in mid-August. The multi-national investment company said the reason it launched the private BTC trust was because bitcoin is still a “primary subject of interest,” according to Blackrock’s clientele.

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Alladin, asset manager, Augmented Reality, Bitcoin, Blackrock, ceo, CIO, Coinbase, Coinbase Partnership, crypto assets, Digital Assets, Digital Currencies, filing, GameFi, Gaming, Larry Fink, Meta, Metaverse, Metaverse Companies, metaverse etf, NFTs, report, Rick Rieder, Social Media, virtual platforms, Virtual Reality, VR

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What do you think about Blackrock’s desire to launch a metaverse ETF? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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17 companies

Bittrex, Merkle Science, Bitgo Join Crypto Market Integrity Coalition

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Bittrex, Merkle Science, Bitgo Join Crypto Market Integrity Coalition

Following the introduction of the Crypto Market Integrity Coalition (CMIC) with 17 member firms last February, the organization has added eight new members. New coalition recruits include Bittrex, Merkle Science, Crystal Blockchain and Bitgo.

8 Crypto Market Firms Join Crypto Market Integrity Coalition to Improve Self-Regulation

Seven months ago, 17 crypto firms announced the formation of the Crypto Market Integrity Coalition (CMIC), a group that aims to bolster a sensibly-regulated crypto industry. Original CMIC members included Circle, Coinbase, Anchorage Digital, Huobi Tech, Liberty City Ventures, and the Chamber of Digital Commerce.

“Through the pledge, the coalition seeks to send an unequivocal message at this critical moment in the evolution of digital assets: The crypto industry has made enormous strides to improve market integrity in the past few years,” the CMIC launch announcement noted on February 7, 2022.

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On Thursday, CMIC detailed that eight new members have joined the coalition. Newly added CMIC members include Bittrex, VAF Compliance, Merkle Science, Tokenomy, Crystal Blockchain, Finclusive, Oasis Pro Markets, and Bitgo. The chief compliance officers (CCOs) at Bitgo and Bittrex spoke about joining the CMIC initiative.

Michael Carter, the chief compliance officer at Bittrex said the crypto exchange looks forward to “working with fellow coalition members on collective educational efforts and sharing insights that will contribute to the industry’s continuing evolution.” Jeff Horowitz, Bitgo’s chief compliance officer detailed that Bitgo welcomes discussions with regulators and policymakers.

“We’re seeing increasing appetite on the part of institutional investors to actively participate in the growing digital asset economy, and regulatory clarity will address concerns that have stemmed from uncertainty,” Horowitz said on Thursday during the CMIC announcement. “We continue to welcome discussion with policymakers on how to encourage innovation while protecting investors and businesses,” the Bitgo

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17 companies, 8 companies, Anchorage Digital, BitGo, Bittrex, Circle Internet Financial, CMIC, Coinbase, Crypto Market Integrity Coalition, Cryptocompare, Crystal Blockchain, Finclusive, Huobi Tech, investor protection, Jeff Horowitz, Merkle Science, Michael Carter, Oasis Pro Markets, prevent manipulation, Public confidence, the Chamber of Digital Commerce, Tokenomy, VAF Compliance

What do you think about the eight crypto companies that recently announced joining the Crypto Market Integrity Coalition? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Coinbase

What the SEC’s 2019 statement has to do with Coinbase’s $350 million lawsuit

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What the SEC’s 2019 statement has to do with Coinbase’s $350 million lawsuit

U.S.-based crypto exchange Coinbase is in the news again. And this time, the exchange faces a lawsuit filed by Veritaseum Capital LLC over an alleged patent infringement. The lawsuit, which was filed in the U.S. District Court in Delaware, claims that Coinbase infringed a patent held by Reggie Middleton, founder of Veritaseum Capital. 

The allegations in question…

Veritaseum Capital uses blockchain technology, smart contracts and distributed computing. All of this to aid industries suffering from high economic rents, undue friction, and gross inefficiencies.

The patent was reportedly issued to Middleton in December 2021 by the U.S. Patent and Trademark Office. The court filing goes on to allege that Coinbase violated Middleton’s intellectual property rights. Coinbase did so by infringing the patent’s claims through various services on its site, such as Coinbase Cloud, Pay, Wallet, Delegate, and Validator software. 

Furthermore, the plaintiff seeks $350 million in damages, citing “substantial profits that Coinbase has raked through the alleged violation, causing “irreparable harm” to Veritaseum Capital in the process. 

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Additionally, Veritaseum Capital attorneys allegedly stated that Coinbase was “uncooperative” when the organization was approached for an out-of-court settlement. 

A whiff of a fraudulent scheme here?

In a quick turn of events, it turns out that Veritaseum Capital was sued by the Securities and Exchange Commission (SEC) in 2019. This was over an alleged fraudulent token offering and a manipulation scheme laid out by the plaintiff.

In their 2019 press release, the SEC called Middleton a “self-described financial guru” who marketed and sold VERI tokens on the internet. Furthermore, the organization enticed retail investors to buy the token based on multiple material misrepresentations and omissions. 

Furthermore, the regulator alleged that Middleton and his entities knowingly misled investors about prior business ventures. The organization tried to sell an oversized demand for the VERI token. Furthermore, a claim around a product to generate revenue was also made. However, no such product existed. 

The case was settled after a $9.4 million penalty paid to the SEC which included a $1 million penalty against Middleton himself.

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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