US Securities and Exchange Commission sues Coinbase for unregistered cryptocurrency trading

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The lawsuit was filed in federal court in Manhattan, a day after the SEC sued Binance, the world’s largest cryptocurrency exchange, and its founder, Changpeng Zhao. Coinbase IPO on Nasdaq AP Photo/Richard Drew The US Securities and Exchange Commission sued Coinbase, one of the largest cryptocurrency trading platforms in the United States, on Tuesday (6) accusing it of operating illegally without being registered with the SEC (Securities and Exchange Commission). The SEC works as a body responsible for protecting and regulating the US capital market. The institution is also responsible for monitoring the operation of companies. The lawsuit was filed in federal court in Manhattan, a day after the SEC sued Binance, the world’s largest cryptocurrency exchange, and its founder, Changpeng Zhao. Share on WhatsApp Share on Telegram Binance was accused of operating a “web of deceit” that included artificially inflating its trading volumes and siphoning off client assets. The regulatory agency made the allegations and launched the lawsuit against Zhao and the company this Monday (5), based on three main allegations: not restricting American customers of its platform; mislead investors about their market surveillance controls; operate an unregistered stock exchange. The SEC complaint, filed in federal court in Washington DC, also alleged that Binance and Zhao secretly control client assets, which would allow the executive to mix and siphon money, and that the exchange created separate U.S. entities “as part of an elaborate scheme to circumvent federal securities laws”. *This article is being updated

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