Coinbase has been targeted by US regulators in a new lawsuit alleging that the cryptocurrency platform operated as an unregistered securities platform and brokerage service.
NEW YORK — Coinbase was targeted by US regulators in a new lawsuit on Tuesday alleging that the cryptocurrency platform operated as an unregistered securities platform and brokerage service.
The lawsuit from the SEC comes just a day after it filed charges against Binance, the world’s largest cryptocurrency exchange, accusing its founder Changpeng Zhao of misusing investor funds, operating as an unregistered exchange and violating a slew of US securities laws. .
Coinbase shares fell nearly 15% early on Tuesday.
In its complaint, the SEC said that Coinbase made billions as the go-between for buyers and sellers of cryptocurrency but did not give investors legal protections while acting as an intermediary.
said the SEC in its complaint, which was filed in the US District Court for the Southern District of New York. He is seeking injunctive relief, nullification of wrongful gains as well as interest, penalties, and other equitable compensation.
Coinbase said the Securities and Exchange Commission (SEC) has not been transparent about how it regulates cryptocurrencies.
Paul Grewal, chief legal officer and general counsel for Coinbase, said in a written statement. The solution is legislation that allows fair rules of the road to be drawn up transparently and applied equally, not litigation. In the meantime, we will continue to conduct our business as normal.”
The Securities and Exchange Commission warned Coinbase in March that it could face securities fees and has long indicated that Coinbase was violating securities laws with its position that cryptocurrencies are not securities and therefore do not need to register as a broker.
Guerber S. said: Grewal, director of enforcement at the SEC: “You can’t simply ignore the rules because you don’t like them or because you prefer different rules: the consequences for the investment public are too great.” , in a prepared statement.
Prosecutors and the US Securities and Exchange Commission indicted FTX founder Sam Bankman-Fried with a slew of money laundering, fraud and securities fraud in December. His criminal trial is likely in the fall.
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