CFTC Orders Coinbase Inc. To Pay $6.5M Penalty

Re:CFTC Orders Coinbase Inc. To Pay $6.5M Penalty by jkhdigital on Saturday March 20, 2021 @09:18AM (#26523018)

I think the size of the penalty is an indication that the scale of the illegal activity relative to the total trading volume on Coinbase was probably minimal.

Considering the description of how this happened (two independent trading bots that sometimes matched one another) it sounds more like a lack of controls rather than any malicious intention to deceive markets. And, at least for now, intent matters in our legal system.

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Re:CFTC Orders Coinbase Inc. To Pay $6.5M Penalty by ffggvv on Saturday March 20, 2021 @12:39PM (#26524272)

it sounds like there was two things that happened:

1. What you said. Two bots that lacked controls and interacted with eachother. which may have been accidental

2. A rogue employee intentionally using those bots to fake volume on a specific currency pair. This is actually malicious.

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