Coinbase has refuted the WSJ claims in a blog post, accusing the paper of confusing "client-driven activities" with prop trading. In a statement to the WSJ, published in the article alongside the allegations, a Coinbase spokesperson said that "Coinbase does not, and has never, had a proprietary trading business. Any insinuation that we misled Congress is a willful misrepresentation of the facts".
According to a report in the Wall Street Journal, US-based cryptocurrency exchange Coinbase tested a group to speculate on cryptocurrencies in hopes of earning funds for the business. The WSJ said they performed a $100 million "test trade" before ending the initiative. Some Coinbase employees described the project as proprietary trading — something Coinbase has testified in front of Congress to say they don't do. Prop trading is controversial because of the potential conflicts of interest, in which firms can end up effectively trading against their own customers.