The Securities and Exchange Commission (SEC) has charged Coinbase, the largest cryptocurrency exchange in the United States, with operating an illegal trading platform offering unregistered securities for crypto assets. The securities watchdog also accused the platform of operating a staking as-a-service program for digital assets without permission.
in a complaint foot Before a US district court in New York, the SEC also alleged that Coinbase combined the functions of an exchange, brokerage, and clearing agency — which are separated under US laws — without registering to engage in these activities.
“All the while, Coinbase earned billions of dollars in revenue by, among other things, charging transaction fees from investors who Coinbase denied the disclosures and protections involved in filing and therefore exposed them to significant risks,” the SEC explained in its complaint.
The lawsuit against Coinbase comes a day after the regulator accused Binance, the world’s largest cryptocurrency exchange by trading volume, in a District Court in Colombia for allegedly operating an illegal exchange, offering unregistered securities of crypto assets to investors and hoarding customer funds. In late March, Coinbase received a Wells Notice from regulator, notifying the Nasdaq-listed cryptocurrency exchange that it was violating US securities law by offering unregistered securities of crypto assets.
The Securities and Exchange Commission (SEC) has charged Coinbase, the largest cryptocurrency exchange in the United States, with operating an illegal trading platform offering unregistered securities for crypto assets. The securities watchdog also accused the platform of operating a staking as-a-service program for digital assets without permission.
in a complaint foot Before a US district court in New York, the SEC also alleged that Coinbase combined the functions of an exchange, brokerage, and clearing agency — which are separated under US laws — without registering to engage in these activities.
“All the while, Coinbase earned billions of dollars in revenue by, among other things, charging transaction fees from investors who Coinbase denied the disclosures and protections involved in filing and therefore exposed them to significant risks,” the SEC explained in its complaint.
The lawsuit against Coinbase comes a day after the regulator accused Binance, the world’s largest cryptocurrency exchange by trading volume, in a District Court in Colombia for allegedly operating an illegal exchange, offering unregistered securities of crypto assets to investors and hoarding customer funds. In late March, Coinbase received a Wells Notice from regulator, notifying the Nasdaq-listed cryptocurrency exchange that it was violating US securities law by offering unregistered securities of crypto assets.