Technology

Hack: SEC Launches Investigation into Coinbase, Crypto Marketplace

As economic publication Bloomberg reports, we learn that the US Securities and Exchange Commission (the US stock market policeman) is launching an investigation into the giant crypto sector Coinbase. At stake is the alleged “security” status of some of the assets listed on the platform.

Coinbase is suspected of trading in unregistered securities

This is a kind of thunderclap that contributes to the weighting of the rather gloomy crypto weather. With a notoriously lousy relationship, the Coinbase platform and the SEC have just reached a new milestone. As such, the US stock market cop just announced that Coinbase is now the subject of extensive investigations into its asset listing practices.

In the background, a recurring theme: The SEC suspects Coinbase of offering unregistered securities for trading (famous “securities” according to the American regulatory taxonomy).

It has not escaped anyone that this procedure could be one of the consequences of a recent case of alleged insider trading by a former Coinbase executive. A case in which the status of the relevant assets – 7 of them to be exact – has already been raised by financial market investigators.

It should be noted that Coinbase seems poised to go into open conflict with the SEC and hit back (as evidenced by the company’s latest blog post in a particularly vengeful tone, “Coinbase does not list securities, end of story”).

If this Coinbase’s militancy seems intact, it nevertheless fails to make up for the bad signal sent to the entire crypto sector. The crypto sector, which the US regulator seems to have made a priority. So at 4:00 French time, the market felt the hit, the entire market capitalization fell by almost 6%, Bitcoin lost almost $1,000 to flirt with $21,000.

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