Shares of the company fell after the lawsuit was filed against cryptocurrency exchange Coinbase.
The cryptocurrency market was shaken yesterday by the lawsuit filed against Binance and its CEO, CZ. Following this development, the US Securities and Exchange Commission (SEC) announced today that it has also filed a lawsuit against Coinbase.
SEC’s Pressure on Cryptocurrency Exchanges Continues
Yesterday, the US Securities and Exchange Commission sued Binance and CEO CZ for violating securities law. However, the SEC has also filed a lawsuit against the US-based cryptocurrency exchange Coinbase today. Coinbase’s shares fell with this lawsuit.
When we look at the view of Coinbase stocks on the 4-hour chart, we can observe a serious decline. With the effect of the lawsuit, the share of COIN, which was hovering in the $ 70 band, has decreased to $ 50.
The SEC accused Coinbase of operating as an unregistered broker, clearinghouse and clearing agency in the lawsuit. The company allegedly carried out activities illegally, such as simultaneously soliciting customers, processing orders, authorizing offers, and acting as an intermediary.
“The legal battle for Coinbase will be long and costly, but it can be difficult to argue and prove that they stand up to the charges and do not illegally offer clearing, broker-dealer and clearinghouse functions,” said Edward Moya, a senior market analyst at Oanda.
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