If it walks like a dog and barks like a dog, it might be digital asset security – Marketingwithanoy

Coinbase, the US-based The cryptocurrency exchange, which is the third largest in the world, is “facing a US investigation into whether it is improperly allowing Americans to trade digital assets that should have been registered as securities,” according to a report from Bloomberg. The news follows a move by the US Department of Justice last week to arrest and charge a former Coinbase employee and two others for wire fraud and wire fraud conspiracy, alleging they had front-run lists on the crypto exchange.

The U.S. Securities and Exchange Commission subsequently filed separate charges against the ex-Coinbase employee for securities fraud based on its belief that nine digital assets involved in the incident were securities, seven of which are on Coinbase, according to a blog post by Coinbase’s head of legal affairs, Paul Grewal. Today’s Bloomberg report confirms that the broader SEC investigation into whether Coinbase allowed Americans to trade securities was underway before the agency filed charges against the ex-employee.

Leave a comment