The CFTC would investigate the crash of the Ethereum occurred on GDAX

According to some sources cited by Bloomberg, the Commodity Futures Trading Commission (CFTC) in the United States has opened an in-depth investigation on the crash of the Ethereum, which occurred earlier this year on the platform GDAX of Coinbase. The flash crash, which took place on the 21st of June, has seen the price of the ETH pass 365,79 $ 0.10 $ in a blink of an eye, before quickly recovering.

Why the CFTC is interested in this case ?

Coinbase has started to offer services of trading margin in march and was suspended after the flash crash. As stated on its Web site, in order to be legally eligible for trading margin, the participants had to comply with numerous conditions. For example, the trader would hold more than 10 million dollars in assets. According to sources who have spoken to Bloomberg, the CFTC specifically examines the role that the enlargement of the margin trading may have had on this decline instant. Indeed, Coinbase has allowed the traders to borrow money to the platform to make transactions more important. These same sources have stated that the CFTC had sent a letter to the headquarters of Coinbase in San Francisco, asking for explanations on these transactions to margin, among other issues.

Coinbase fights

For its part, Coinbase has stated to Bloomberg : “as an instance regulated financial, Coinbase complies with the regulations and fully cooperates with the regulatory agencies. After the crash on GDAX last June, we have advised a number of regulators, including the CFTC. We also decided to credit all customers who have been affected by this event. We are not aware of the existence of a formal investigation. “It is important to remember that Coinbase is not registered with the CTFC, but holds licences after a certain number of regulators in various us States.