The SEC Targets Coinbase For Allegedly Breaking Securities Laws

Coinbase has been targeted by U.S. regulators in a new lawsuit Tuesday that alleges the cryptocurrency platform is operating as an unregistered securities platform and brokerage service.

The lawsuit from the Securities and Exchange Commission comes only a day after it filed charges against Binance, the world’s largest crypto exchange, and its founder Changpeng Zhao are accused of misusing investor funds, operating as an unregistered exchange and violating a slew of U.S. securities laws.

Coinbase shares plunged nearly 15% early Tuesday.

In its complaint, the SEC said Coinbase made billions acting as the middle man for cryptocurrency buyers and sellers but did not give investors lawful protections while acting as a broker.

Read the source article at apnews.com