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Coinbase and Kraken hit back at NY Attorney General’s scathing criticism

Exchanging blows

NYAG, cryptocurrency, exchange, refute, bitcoin, coinbase, kraken

Cryptocurrency exchanges are hitting back at New York Attorney General’s scathing criticism, suggesting the industry lacks fairness, integrity, and security.

Earlier this week, the office of the NY Attorney General office published a report which highlighted a number of risks cryptocurrency exchanges expose their users to, including the possibility of market manipulation.

Yesterday, Coinbase’s Chief Policy Officer, Mike Lempres, published a blog post to clarify some of the report’s findings.

The Attorney General’s report states that “Coinbase disclosed that almost 20 percent of executed volume on its platform was attributable to its own trading.”

Lempres denies the Attorney General’s trading manipulation claims.

“Coinbase does not trade for the benefit of the company on a proprietary basis.” Lempres continued. “In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets).”

Kraken has also weighed into the conversation.

The exchange took to Twitter to clarify it does not operate in New York, and has no obligation to cooperate with the investigation as such.

It then went on to take a dig at the Attorney General office, suggesting the report actually helped the exchange get to know competitors a little better.

It’ll be interesting to see how this situation turns out – and whether cryptocurrency exchanges can dodge yet another regulatory bullet.

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Published September 20, 2018 — 10:50 UTC