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Coinbase Inc., a digital asset exchange, has settled allegations of inaccurate trade reporting from the U.S. Commodity Futures Trading Commission (CFTC).

The CFTC issued an order requiring the San Francisco-based firm to pay US$6.5 million for incorrectly reporting trades in Bitcoin and other digital assets.

Specifically, the commission found that between 2015 and 2018 the company operated two automated trading programs. These programs generated orders that sometimes matched with one another resulting in internalized trades that were then included in reporting to services that post Bitcoin transaction data.

Coinbase therefore overstated the volume and liquidity of Bitcoin and other assets by including those internal trades in its reporting data, the regulator said.

“Reporting false, misleading, or inaccurate transaction information undermines the integrity of digital asset pricing,” said Vincent McGonagle, acting director of enforcement at the CFTC.

“This enforcement action sends the message that the commission will act to safeguard the integrity and transparency of such information,” he added.

The regulator also noted that a former Coinbase employee engaged in wash trading in 2016 and that the company was vicariously liable for the misconduct.