In addition to being sued, Coinbase receives Show Cause order from 10 different state regulators at once. Coinbase has 28 days to show cause why they should not be issued a cease and desist over offering registered securities. Coinbase lost at least $600M in deposits lost as of yesterday
1 min read
When it rains it pours. As we all should know, Coinbase is being sued by the SEC over issuance and offering of unregistered securities. This seems to include a number of listed tokens as well as mainly the fact that Coinbase was one of the only exchanges who continued their staking services after the SEC started charging and fining everyone else like the likes of Kraken and Gemini, who had stopped these services to US investors after the fines and charges.
Coinbase has also received action from 10 different states: AL, CA, IL, KY, MD, VT, NJ, SC, WA, AND WI. This is a Show Cause Order issued (to be settled in Alabama courts) as the result of multi-state action by regulators in ten states. The Show Cause order is exactly what it sounds like: Coinbase has 28 days to show cause as to why they should not be issued a cease and desist order over offering unregistered securities that related to their staking services with first registration of those securities.
Per Coindesk, referencing Nansen, Coinbase has seen losses of at least 500M as of yesterday. This number would have likely risen today.
Sources:
https://asc.alabama.gov/News/2023%20News/6-6-2023_Coinbase.pdf
submitted by /u/OneThatNoseOne
[link] [comments]
