US Commodity Trading Commission, CFTG, said the company is the world’s largest crypto asset trading, Coinbase Inc. has paid US $ 6.5 million on the day of Friday, March 19th 2021.
Quoting from Reuters, The payment of the fine is related to alleged fraudulent transactions by the company to significantly increase trading volume on its platform.
“Today’s settlement order does not include any findings that harm any Coinbase customer,” said a Coinbase spokesperson.
Case Exists Ahead of Coinbase IPO
US regulators also fined Coinbase Inc for alleged trade laundering in Litecoin & Bitcoin by the company. Meanwhile, these allegations were raised ahead of Coinbase’s preparations for listing its shares or IPO (Initial Public Offering) on the Nasdaq exchange, United States.
However, Coinbase eschews traditional initial public offerings, in which the company raises money by selling new shares. Where Coinbase prefers to go public via a live listing, where no new shares are sold and existing shareholders can sell shares.
Meanwhile, Coinbase currently has a valuation of over US $ 8 billion in its last private fundraising round in 2018. In terms of revenue, Coinbase recorded revenues of US $ 1.3 billion in 2020, an increase of US $ 533.7 million from the 2019 period. The company also reported a net profit of US $ 322.3 million, swinging from last year’s loss of US $ 30.4. million.