Leading US cryptocurrency platform, Coinbase Global Inc. is sued by the Securities and Exchange Commission (SEC) in a federal court hearing on Tuesday in New York. Allegations are that the crypto firm broke the regulator’s rule by allowing its users trade numerous crypto tokens which were unregistered securities.
A spokesperson for Coinbase did not immediately reply to a request for comment, reported Bloomberg.
Further, as per the Bloomberg report, in July, Coinbase was under SEC investigation. On March 23, the company said it had received a warning SEC’s Binance Lawsuit Strikes at Heart of Ailing Crypto Sector notice from the regulator about a potential coming enforcement action.
In the federal court, the SEC alleged that Coinbase used its “staking” service that lets customer turn over their crypto tokens to facilitate transactions on a blockchain — which further then pays a return to these users. This is in violation of SEC’s rule.
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Updated: 06 Jun 2023, 06:43 PM IST