The US CFTC has caused a new uproar by issuing subpoena to Coinbase asking for the account details and transaction histories of Coinbase users who interact with Bybit.
ByBit is on Target
The CFTC is investigating Bybit's 'illegal' operations as it is not authorised to provide services to US citizens. By obtaining information from Coinbase, US citizens who transfer funds between Bybit and Coinbase will be identified, and this will confirm that Bybit is illegally providing services to US users.
Long Arms Target after Binance
Bybit is currently the third-largest offshore cryptocurrency exchange after Binance and OKEx. It seems that after dealing with Binance, the US government is now attempting to settle scores with Bybit. Analysts believe that after Bybit, OKX will definitely come under target.
Coinbase in Action
The CFTC's use of Coinbase to obtain ByBit data is likewise a matter of debate. Coinbase has been designated as the middleman because the CFTC lacks the necessary resources and staff. Coinbase too sees this as a chance to dominate the US crypto sector.