SEC sues Coinbase over securities law violations
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The US Securities and Exchange Commission (SEC) filed a lawsuit against the Coinbase crypto exchange. This should from the commission’s press release.
The SEC claims that since 2019, Coinbase “has made billions of dollars by illegally facilitating the buying and selling of cryptoassets,” but has not registered as an exchange, broker, or clearing agency, and thereby evaded disclosure. The head of the SEC, Gary Gensler, said the exchange thus deprived investors of the protections that prevent fraud and manipulation.
The lawsuit was filed in the Federal District Court for the Southern District of New York. The defendants are Coinbase, Inc. and holding company Coinbase Global, Inc. In a statement, the commission indicates that Coinbase violated the law on securities and exchanges. The lawsuit is about compensation for illegally obtained income, an injunction and other legal remedies. The SEC said that the exchange cannot ignore the rules and the law because it does not like them.
On March 23, the SEC notified Coinbase of an investigation into the platform’s listing procedure.
June 5 SEC accused crypto exchange Binance Holdings Ltd. and its founder Zhao Changpeng in violation of the securities law. The commission’s message also claimed that Binance, by not registering as an exchange or broker, created excessive risks for investors, and Changpeng was liable as a controlling person.
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