The United States Securities and Exchange Commission (SEC) sued the cryptocurrency platform Coinbase for operating as a stock exchange and stockbroker without being registered, according to an official statement.
After learning about the demand, the shares of the cryptocurrency exchange platform, which is the only one listed in the United States after its IPO in 2021, sank more than 20% in electronic activities prior to the opening of the Stock Exchange. New York this Tuesday.
This legal action comes one day after the sec will file a complaint against Binance, the world’s largest cryptocurrency platform, for irregularly managing funds from its users and lying to investors and regulators, among other things.
In a statement, the SEC says that coinbase Nor did it record the supply and demand of its cryptocurrency staking or betting service or its operations as a clearing house to guarantee exchanges between investors, credit institutions and other financial agents.
“Since at least 2019, Coinbase has made billions of dollars illegally facilitating the buying and selling of crypto asset securities.”, maintains the SEC in the note in which it insists that Coinbase mixes traditional stock market services with those of a stockbroker without having registered any of those functions.
According to the Securities and Exchange Commission, the fact that Coinbase is not registered has deprived investors of protections, such as inspection by the SEC or safeguards for potential conflicts of interest.
“You cannot simply ignore the rules because you don’t like them or because you prefer different ones: the consequences for the investing public are too great”, said the director of the Enforcement Division of the SEC, Gurbir Grewal, quoted in the statement.
Yesterday the SEC filed a total of 13 charges against Binance and against its founder, Changpeng Zhao, whom he accuses of blatantly ignoring US stock market laws and earning billions of dollars in exchange for putting into “significant risk” the assets of its clients.
“Zhao and the Binance entities were not only aware of the rules, but consciously chose to evade them and put their clients and investors at risk, all in an attempt to maximize their own profits.”, the president of the US regulator, Gary Gensler, said in a statement.
Source: EFE
Source: Gestion
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