US-based crypto exchange Coinbase last year formed a division focused on trading and staking. In addition to serving the interests of clients, its employees also used funds owned by the platform.
According to The Wall Street Journal, Coinbase Risk Solutions described the activity as prop trading. The division included high-ranking ex-traders from Wall Street. Later they left the company.
According to the publication, CFO Alesia Haas oversaw the creation of Coinbase Risk Solutions. It was led by Brett Tapol, Head of Institutional Sales, Trading, Custody and Prime Brokerage Services.
The WSJ has noted that employees were advised not to share information about the new trading business or discuss it in internal messages.