Coinbase Global Inc. was looking for new ways to make money. One business it flirts with has been controversial: using its own funds to speculate on cryptocurrencies. Last year, Coinbase – works a major cryptocurrency exchange handles bitcoin and other cryptocurrencies — hired at least four high-profile Wall Street traders and formed a team to generate profits, in part, by using company cash to trade translate and “send” or lock the cryptocurrency, according to people familiar with the matter. This activity has been described by everyone at the company as a “proprietary” business.
Earlier this year, the team completed a $100 million transaction that the team views as a test transaction for the new endeavor, according to these people. The transaction took place after Coinbase executives testify for members of Congress last year that the company did not buy and sell digital currencies for its own account.