U.S. SEC sues Coinbase, day after suing Binance

10 個月前

STORY: Another crypto giant is in trouble with U.S. regulators.

This time it's Coinbase.

On Tuesday (June 6) the U.S. Securities and Exchange Commission sued the country's largest crypto asset trading platform.

The SEC accused the company of illegally operating without having first registered with the regulator.

It said Coinbase operated as an unregistered broker by handling cryptocurrency transactions since at least 2019.

It is alleged to have evaded the disclosure requirements meant to protect investors.

The SEC accused the firm of operating as an unregistered broker through its services Coinbase Prime and Coinbase Wallet.

SEC Chair Gary Gensler Tweeted that the company's alleged failures deprived investors of key protections from fraud and other serious matters.

Shares in the firm fell around 16% in premarket trading after the lawsuit was filed.

Coinbase did not immediately respond to request for comment.

The lawsuit comes just a day after the SEC sued Binance and its founder Changpeng Zhao.

Binance is the world's largest crypto exchange.

Data released Tuesday showed investors had pulled around $790 million from the exchange and its U.S. affiliate in the 24 hours following the lawsuit.