Has Coinbase Been Trading Against its Own Customers After Promising it Doesn’t do that?

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Coinbase has debunked claims made by news outlet the Wall Street Journal (WSJ), which reported that despite claiming not to do so, Coinbase engaged in proprietary trading that could potentially conflict with the interest of its customers.

In a blog post, Coinbase stated that WSJ seems to confuse the nature of a transaction it made earlier this year through Coinbase Risk Solutions (CRS) - its newly formed unit focused on helping institutional investors interested in entering the crypto market.

The WSJ report claims the new unit was formed for the purpose of proprietary trading citing "people at the company." Proprietary trading is a legitimate practice done by banks and financial institutions that trade their own money for their gain, rather than doing so to earn a commission from their clients.

However, the bone of contention as the report claims is that the unit performed a transaction worth $100 million. This transaction was viewed inside the company as its first proprietary trade even though Coinbase had told Congress last year that it does not engage in proprietary trades.

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