Coinbase Executives Sell Significant Amounts of Company Stock
Several top executives at Coinbase, including CEO Brian Armstrong, have reportedly sold significant amounts of company stock, according to filings submitted to the US Securities and Exchange Commission. Armstrong sold over $5.8 million worth of shares this week, marking his largest-ever sale, and has previously disclosed his plan to sell his 2% stake in Coinbase over the next year. The stock sales come as Coinbase faces regulatory scrutiny and stagnant trading volumes in the cryptocurrency market, raising concerns about the stock's future performance despite a 125% rally this year. The Securities and Exchange Commission has also filed a lawsuit against the exchange, alleging that it offered some unregistered securities.
SEC lawyers incredulous at Coinbase's claim of ignorance in securities law violation case
Lawyers for the US Securities and Exchange Commission have expressed disbelief at Coinbase's claim that it was unaware it had violated securities laws. The SEC also rejected the suggestion that its approval of a 2021 registration statement related to Coinbase's initial public offering meant that its enforcement case had no merit. The agency argued that Coinbase, a multi-billion-dollar entity advised by sophisticated legal counsel, had adopted a legal framework as a basis for making listing decisions that it now claims has no applicability to its activities. The SEC's response came in reply to an attempt by Coinbase to have the case thrown out.
SEC argues Coinbase acknowledged possibility of federal securities laws applying to its listings years ago
The U.S. Securities and Exchange Commission (SEC) has responded to a filing by Coinbase, arguing that the agency has jurisdiction to bring a lawsuit against the company. The SEC sued Coinbase last month, alleging that it was operating as an unregistered broker, clearinghouse, and exchange all at once. The regulator stated that Coinbase had previously acknowledged the possibility that federal securities laws would apply to its listings and had adopted the legal framework enacted by the U.S. Supreme Court to determine whether certain cryptocurrencies met the requirements of federal securities laws.
Coinbase Users Report Scams and Phishing Attacks on Twitter
Coinbase users have been reporting scams and phishing attacks on Twitter, with some scammers using the company's domain name to trick victims. One user, Daniel Mason, received texts and emails from a fraudster using the Coinbase.com domain, who then directed him to a phishing text message and obtained personal information. Other users have reported similar incidents, including one victim who claims a hacker stole their crypto after being authenticated as a Coinbase employee by a support line employee. Coinbase advises users to use strong passwords and two-factor authentication, and warns that its staff will never ask for passwords or verification codes.
Coinbase Shares Fall Nearly 2% Despite Partnership News and Pending ETF Approvals
Despite a positive start to the week with news of Coinbase partnering with asset managers on new bitcoin exchange-traded funds, the company's shares ended Wednesday down almost 2%. This was due to a downgrade from analysts at Piper Sandler, who cited uncertainty around future revenues.
Coinbase Product Director Finds $320K Worth of Crypto for Unaware Owner
Coinbase product director Conor Grogan discovered over $320,000 worth of cryptocurrency for an individual who was unaware of its existence. Grogan explained that during the Ethereum blockchain fork in 2016, those with onchain funds would have been credited an equal amount of ETH for their ETC, but many were unaware of this.
Binance's Market Share Shrinks as Regulatory Crackdowns Continue
Binance, the world's largest cryptocurrency exchange, and its U.S. affiliate have seen a decline in market share this year due to regulatory crackdowns. Binance's global market share has dropped from 60% to 52% after being hit by a lawsuit from the U.S. Securities and Exchange Commission.
Spot Trading Volumes Rise for the First Time in Three Months: Report
Despite facing lawsuits, Binance and Coinbase have seen a 16.4% increase in spot trading volumes on crypto exchanges, reaching their highest level in three months. However, overall exchange volumes remain low, with Binance's share dropping to 41.6%.
Valkyrie Digital Assets Refiles Application for Bitcoin ETF with Coinbase as Partner
Valkyrie Digital Assets has resubmitted its application for a bitcoin exchange traded fund (ETF) to the U.S. Securities and Exchange Commission, following in the footsteps of BlackRock and Fidelity. The asset manager has named Coinbase as its partner for a surveillance-sharing agreement, which is designed to prevent market manipulation and is a key component of all ETF applications. Valkyrie has also announced that Nasdaq has signed a term sheet with Coinbase, which is the largest spot trading platform for Bitcoin in the U.S. BlackRock and Fidelity have also resubmitted their ETF applications recently, with Valkyrie having already received approval for a bitcoin futures ETF in May 2022.
Kraken Emerges as Liquidity Leader Amidst SEC Enforcement Actions and Crypto Exchange Turmoil
July 4 (Cointime) - Enforcement actions by the SEC against Ripple, Binance, and Coinbase have negatively impacted the liquidity of other crypto exchanges. The CEX landscape has already faced challenges, and a new report shows a slow recovery in liquidity during Q2.
