US SEC sues Coinbase a day after Binance
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13:10 15/11/24
The US Securities and Exchange Commission is suing cryptocurrency exchange Coinbase, accusing it of operating illegally because it failed to register with the regulator.
The suit comes a day after the SEC issued suit against Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao.
"Coinbase's alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection," said SEC chair Gary Gensler.
Shares of parent Coinbase Global, which is also a defendant, fell 16% in New York. The SEC alleged Coinbase made billions of dollars by processing crypto transactions but avoided disclosure requirements meant to protect investors.
"You simply can't ignore the rules because you don't like them or because you'd prefer different ones," SEC Enforcement Chief Gurbir Grewal said in a statement.
On Monday, the SEC said Binance inflated trading volumes, diverted customer funds, failed to keep wealthy US customers off its platform, and misled customers about its controls.