Coinbase Global Inc said on Wednesday that it has received a warning from the US Securities and Exchange Commission that the cryptocurrency exchange could face civil action over some of its products.
Shares of Coinbase were down nearly 12% at $68.18 in extended trading.
The Wells notice suggests that SEC staff intend to recommend enforcement action against the company, but it does not always allege or indicate that the recipient has violated any law.
Potential enforcement actions will relate to aspects of the company’s spot market, its Coinbase Earn, Coinbase Prime and Coinbase Wallet products.
Coinbase also said that its services will continue to operate as usual following the issuance of the notice.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.