The New York Attorney General’s office (OAG) recently published a report that summarized their investigations into multiple cryptocurrency exchanges. One noteworthy claim against cryptocurrency exchange Coinbase was that they engage in proprietary trading against their own customers.

Coinbase has now responded to these allegations, claiming that proprietary trades do not account for a large percentage of their overall trading volume.

The OAG outlined their allegations in their report, saying:

“The OAG found that significant variation exists in the amount of trading activity attributable to those platform operators. Circle reported that it accounted for less than one percent of the executed volume on its platform Poloniex during the most recent time period reviewed. BitFlyer USA indicated that its own activity accounted for approximately ten percent of the executed volume on its platform. Another, Coinbase, disclosed that almost twenty percent of executed volume on its platform was attributable to its own trading.”

The OAG also noted that this practice, although common in traditional securities markets, raises questions regarding the safety of investors on that platform, claiming that investors could be misled as to how liquid the exchange really is.

Coinbase has now responded to the claims, explaining that they never engage in proprietary trading, and that the volume found by the OAG was Coinbase executing trades on behalf of its retail brokerage customers.

Coinbase’s Chief Policy Officer, Mike Lempres, responded to the OAG report on Thursday, saying in a blog post that:

“Coinbase does not trade for the benefit of the company on a proprietary basis. In order to provide an easy-to-use customer experience, Coinbase Consumer quotes a price and then quickly fills the order from our exchange platform (Coinbase Markets). This takes advantage of the liquidity provided by the entire Coinbase ecosystem.”

Coinbase’s platform operates somewhat differently from a traditional centralized cryptocurrency exchange, in that traders see a single sell/buy price for a specific digital asset, rather than seeing a full order book with the quantity of bids/asks set at certain prices.

When an investor purchases or sells a cryptocurrency on the exchange, the exchange automatically fills it from their centralized exchange platform, Coinbase Markets, and masks the fill/sell process from users. This is partially what makes buying and selling cryptocurrencies on Coinbase’s platform easy for novice investors, although it typically leads to lower bids/ask prices in order to instantly fill the orders.

Lempres also added in the blog post that the exchange does not act as a market maker or in-house trading desk, noting:

“The volume figure stated in the report has been misreported in the media as ‘self-trading,’ which is inaccurate. The figure represents customer-driven volume via Coinbase Consumer. Coinbase does not operate a proprietary trading desk, nor does it undertake market making actions.”