Coinbase may have used its financial reserves for speculation in the cryptocurrency market.
According to the Wall Street Journal, the company was trading through its risk management division.
Last year, Coinbase hired four traders from Wall Street and created a team that was engaged in investments in the market in order to extract maximum profit.
The risk management unit was originally created to manage the capital of the platform’s clients. However, after that, the team of traders started to use the company’s own funds to earn on long-term rates.
In addition, they were investors who were developing strategies with which to make a profit.
