Coinbase CLO Dismisses Allegations Of $25M Illegal Political Donation
The post Coinbase CLO Dismisses Allegations Of $25M Illegal Political Donation appeared on BitcoinEthereumNews.com.
In a recent controversy, Coinbase, a popular U.S. cryptocurrency exchange, is under scrutiny for allegedly making an illegal $25 million political donation. These allegations suggest that this donation to Fairshake, a super PAC aimed at supporting crypto-friendly political candidates, violated federal campaign finance laws. The federal laws prohibit contributions from current or prospective federal government contractors. However, the exchange’s Chief Legal Officer (CLO), Paul Grewal, has fired back at these allegations. He clarified that the crypto exchange hasn’t violated any federal law. The Allegations & Timeline Molly White, a noted crypto critic, highlighted that the exchange’s $25 million contribution on May 30, 2024, came during a prohibited period. According to White, the U.S. Marshals Service (USMS) had issued a contract opportunity on March 4, 2024. They sought a provider to manage and dispose of large quantities of cryptocurrency assets. Bids for this contract were due by April 1, 2024, and on July 1, 2024. Moreover, the contract worth $32.5 million was awarded to Coinbase. The Federal Election Commission (FEC) stipulates that federal contractors are barred from making political contributions from the time a request for proposals is issued until the contract is completed or negotiations are terminated. Given this, White argued that the exchange’s $25 million donation on May 30, 2024, fell well within this restricted timeframe. Furthermore, another $500,000 donation by the CEX to the Congressional Leadership Fund on March 20, 2024, came into the spotlight. White argued that this donation could also be scrutinized under these regulations. Also Read: Gravity (G) Rises 7% Amid Coinbase Roadmap Listing Update Coinbase CLO’s Response Paul Grewal, the exchange’s CLO, strongly refuted these allegations, labeling them as “misinformation.” Grewal took to X and wrote, “Whether intentional or not, this is misinformation. Coinbase is not a federal contractor under the plain language of 11…
Filed under: News - @ August 3, 2024 11:20 pm