The American exchange Coinbase 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. This team was engaged in investments in the market to extract maximum profit.
The journalists found out that the risk management unit was created to manage the capital of the platform's clients. However, after that, the team of traders began to use the company's funds to earn long-term rates.
In addition, they were investors who were developing strategies with which to make a profit.
Against the backdrop of a falling market, the Coinbase exchange suffered heavy losses. In the second quarter of 2022, the net loss of this crypto company was more than $1.1 billion.