The US Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase, the largest cryptocurrency exchange in the US, causing Bitcoin to plummet!
SEC Targets Coinbase Exchange This Time!
The US Securities and Exchange Commission (SEC) has sued Coinbase Global Inc. in federal court in New York, alleging that the crypto firm has violated rules for years.
SEC has filed a lawsuit against #Coinbase exchange.
— CO NEWS (@coinotag) June 6, 2023
The SEC alleges that Coinbase, the largest US cryptocurrency exchange, has violated regulations by allowing users to trade many crypto tokens that are actually unregistered securities.
In the lawsuit against Coinbase, the SEC claimed that these coins are securities; SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO
Coinbase was reportedly under investigation by the SEC in July. On March 23, the company said it had received a warning notice from regulators about possible enforcement action.
SEC Chairman Gary Gensler said that cryptocurrency exchange Coinbase is no longer adequately protecting investors.
The SEC accused Coinbase of violating the agency’s rules with its “staking” service. This product allows customers to transfer their cryptocurrencies onto a blockchain to facilitate transactions and then pays the customer a return.
SEC Targets Crypto Sector
On June 5, the SEC filed a lawsuit against Binance exchange and Binance CEO CZ for violating securities laws. Today, the SEC also filed a lawsuit against Coinbase exchange.
After the lawsuit, Bitcoin fell more than 1% from $25,680 to $25,351. Coinbase’s shares also fell more than 15% in pre-market trading, dropping below $50.
