The SEC sues Coinbase, alleging the exchange operated as an unregistered broker since at least 2019 and broke the rules by offering “staking”; COIN drops 15%+

The Securities and Exchange Commission sued Coinbase Global Inc. in federal court in New York on Tuesday, alleging the crypto firm for years broke its rules.

Bloomberg 2023-06-06 Austin Weinstein

Discussion

@tier10k @tier10k on x
[DB] SEC Sues Coinbase
@tier10k @tier10k on x
[DB] SEC Allege the Following Coins Are Securities in Coinbase Lawsuit SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO
@garygensler Gary Gensler on x
Coinbase's alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC. https://twitter.com/...
@secgov @secgov on x
Today we charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency and for failing to register the offer and sale of its crypto asset staking-as-a-service program. https://www.sec.gov/... […
@tier10k @tier10k on x
SEC v Coinbase https://storage.courtlistener.com/ ...
@barrysilbert Barry Silbert on x
@fintechfrank no Proof of Work tokens in any of the lawsuits, I believe (BTC, LTC, XMR, ETC, ZEC, etc.)
@cz_binance @cz_binance on x
If you have to pick a fight with everyone, maybe you are the one at fault. 🤷‍♂️
@nathandeandc Nathan Dean on x
Say what you want about @GaryGensler, but launching lawsuits after a comprehensive crypto market structure bill drops and before one of the companies impacted is scheduled to testify on the Hill, it's definitely a way to wake up policymakers.
@spreekaway @spreekaway on x
“If you chase two unregistered securities exchanges, you will lose them both” — ancient proverb https://twitter.com/...
@jacqmelinek Jacquelyn Melinek on x
SEC CHAIR GENSLER VIEWS REGULATION AS A POSITIVE, NOT IMPEDING INNOVATION “Through appropriate regulation of securities markets, for 90 years, we have helped the US economy grow and prosper.” “...Crypto markets are undermining that trust.”
@mptherealmvp Maria Paula on x
We're about 23 hours away from the SEC subpoena to Mike Hanlon and the Uniswap Community Global ASIA SYSTEM.
@ldrogen Leigh Drogen on x
And allowed them to go public This is just straight up back alley mob tactics from Gensler, and there are no repercussions for him, he's beyond the law until they go to court where he's gonna get wrecked https://twitter.com/...
@hsakatrades @hsakatrades on x
>SEC sues Coinbase, says operated as an unregistered broker since 2019 >US gov sells billions worth of BTC via Coinbase since 2019
@sh_brennan S. Brennan on x
SEC v Binance as we get news of the draft market structure bill and now dropping this suit before today's ag committee hearing .... is interesting timing... https://twitter.com/...
@theemilyaccount Emily on x
why did the large crypto companies not simply place regulators in sinecures at their firms, while also sending people to work at the regulators? don't blame gensler for a skill issue
@abu9ala7 Mohammad on x
You: supports the exchanges against the SEC the exchanges: take the other side of your trade in anticipation of the news release
@dlauer Dave Lauer on x
This is an important point - once SEC calls them securities, there are registration & disclosure requirements. They specifically cite the concern about selective disclosure. They also point to past enforcement cases establishing security status for assets that continued trading. …
@dlauer Dave Lauer on x
SEC goes after Coinbase: https://storage.courtlistener.com/ ... Looks like operating an unregistered broker, exchange and clearing agency might be a problem. [image]
@toptickcrypto @toptickcrypto on x
NEXO really caught a stray on this one. Coinbase lists hundreds of crypto assets directly, but SEC included NEXO in the 13 specified tokens when it's only available for purchase via dex within the non-custodial coinbase wallet. [image]
@mayazi Maya Zehavi on x
What does it tell you about the SEC that we only learn which new coins the SEC thinks are securities with every new lawsuit ? They literally only add to the list via indictments
@wclementeiii Will Clemente on x
So glad Gensler was meeting with SBF and FTX multiple times while focusing on the real issues that matter: Suing the most regulated publicly traded exchange (enabled by the SEC) that's audited by a top 5 accounting firm. Feeling really protected, thanks Gary.
@lopp Jameson Lopp on x
SEC in their Coinbase lawsuit seems to be claiming that SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO are securities. https://storage.courtlistener.com/ ...
@thestalwart Joe Weisenthal on x
Here's the part where we talk with @brian_armstrong about whether or not Coinbase lists securities [image]
@mdudas Mike Dudas on x
the us government is simultaneously asserting that nearly all cryptocurrencies are securities while attempting to shut down all venues to trade them compliantly while failing to issue any reasonable framework or process for these novel assets to comply with securities regulations
@robustus Dan McArdle on x
Nobody wants your “protection”. You sound like a mob-boss, just with more delicate language. https://twitter.com/...
@odell @odell on x
coinbase should have stayed humble and focused on bitcoin rather than dumping a16z backed tokens on retail
@jwverret J.W. Verret🛡 on x
I asked Chairman Gensler about his failure to create any meaningful path for crypto firms desperately trying to register and comply and he refused to answer. https://twitter.com/... https://twitter.com/...
@adamscochran Adam Cochran on x
1) World of difference in the claims between Binance and Coinbase from the SEC. 2) SEC is claiming they allowed an unregistered broker-dealer to be reviewed, IPO and public trade for years without action or guidance...🤡 Time to get Gensler in front of Congress again.
@dylanleclair_ @dylanleclair_ on x
SEC suing Binance & Coinbase in back to back days. None of this is the slightest bit surprising. Whether you like it or not is a different story - but it's the reality. They were always going to throw the book at this ‘industry’.
@smtuffy Sean Tuffy on x
I have a feeling this ain't exactly they regulatory clarity they were hoping for https://twitter.com/...
@thestalwart Joe Weisenthal on x
Ah indeed. Brian Armstrong's Odd Lots interview cited by the SEC. https://www.bloomberg.com/... https://twitter.com/... [image]
@degenspartan @degenspartan on x
my personal theory is binance too big to be bank runned retail dont know have hw wallets and most dont have a 2nd exchange set up ppl say coinbase but coinbase is mainly just americans that cant use binance anyway
@eleanorterrett Eleanor Terrett on x
4 key complaints from the @coinbase lawsuit: 1. Coinbase has operated as an unregistered broker since at least 2019, evading the disclosure scheme for securities markets. 2. Coinbase has deprived investors of disclosures and protections that come from registration, exposing... ht…
@stephanlivera Stephan Livera on x
“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” said SEC Chair Gary Gensler https://www.sec.gov/...
@ryansadams @ryansadams on x
The SEC complaint say https://binance.us/ was controlled by Binance. but let's zoom out, why do we need .US at all? The fact that American's have to settle for shittier versions of exchanges because our patronizing regulators refuse to treat us like adults is the problem.
@cryptoalle Alle on x
woke up and already feeling protected. thank you Gary Gensler https://twitter.com/... [image]
@quantian1 @quantian1 on x
I like how the defense of Coinbase for a while was “they went public so obviously the SEC already vetted them then”. Hilarious, really. https://twitter.com/...
@ki_young_ju Ki Young Ju on x
SEC is going crazy https://twitter.com/...
@pt Parker on x
Mistakes were apparently made... https://twitter.com/...
@mrjasonchoi Jason Choi on x
Interesting decision for Gensler to let FTX slide but go after the most legitimate name in crypto https://twitter.com/...
@ramahluwalia @ramahluwalia on x
The SEC suing Binance & Coinbase only after approving Prometheum is no accident. The SEC is trying to combat the ‘come in and register’ self-inflicted PR wound. Meanwhile it's been 4 years since the SEC update any guidance - before staking, defi, and L2s existed. https://twitter.…
@awawat_trades @awawat_trades on x
I think Gary's mistake is suing literally every player in the space, instead of doing a divide and conquer type strat. Now it's everyone vs the SEC.
@functi0nzer0 Laurence on x
lol lmao [image]
@ap_abacus Andrew on x
SEC complaint is 101 pages long: https://storage.courtlistener.com/ ...
@mdudas Mike Dudas on x
the us government doesn't believe you're an adult capable of making your own financial decisions
@trustlessstate @trustlessstate on x
BREAKING WE'RE ALL CRIMINALS
@garygensler Gary Gensler on x
I'll be joining @SquawkStreet at 9:10 and @BloombergTV at around 10:30 to discuss crypto and the securities laws.
@iampaulgrewal @iampaulgrewal on x
Tomorrow I will be testifying on Capitol Hill before the House Committee on Agriculture on the need for clear crypto rules and the Digital Asset Market Structure Discussion Draft. Read a summary of my testimony here/below:https://www.coinbase.com/ ...
@tree_of_alpha @tree_of_alpha on x
So which is it? -Coinbase is an unregistered securities dealer. -Coinbase is a publicly-listed company that was already trading assets you claim are securities before you allowed it to IPO. Choose one old man. The absolute SEC mental gymnastics are getting out of hands.
@defiyst @defiyst on x
This + Binance action yesterday. A Ripple case decision must be imminent? https://twitter.com/...
@leomschwartz Leo Schwartz on x
SEC sues Coinbase — here's the full 101-page complaint. Lists the following coins as securities: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO https://storage.courtlistener.com/ ...
@katie_martin_fx Katie Martin on x
“The Coinbase Platform merges three functions that are typically separated in traditional securities markets—those of brokers, exchanges, and clearing agencies. Yet, Coinbase has never registered with the SEC as a broker, national securities exchange, or clearing agency”
@thestalwart Joe Weisenthal on x
$COIN -11%
@nycsouthpaw @nycsouthpaw on x
The SEC is settling all the family business this week. https://storage.courtlistener.com/ ...
@sassal0x @sassal0x on x
Once again, ETH not listed as a security in the SEC Coinbase suit Apparently being labelled a security is transitory - Gary Gensler is trying to cosplay as Jerome Powell
@sino_market @sino_market on x
US-listed crypto exchange Coinbase falls 5.1% premarket after SEC sues Coinbase in New York federal court. $COIN #Coinbase [image]
@deitaone @deitaone on x
SEC SAYS COINBASE HAS NEVER REGISTERED AS A BROKER, NATIONAL SECURITIES EXCHANGE OR CLEARING AGENCY, EVADING THE DISCLOSURE SCHEME FOR SECURITIES MARKETS $COIN
@mayazi Maya Zehavi on x
Gary upping the ante this week. https://twitter.com/...
@secgov @secgov on x
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates https://t.co/...; and their founder, Changpeng Zhao, with a variety of securities law violations. https://www.sec.gov/... [image]
@cz_binance @cz_binance on x
4. Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. We will issue a response once we see the complaint. Haven't seen it yet. Media gets the info before we do. 🙏 https://twitter.com/...
@cz_binance @cz_binance on x
4. Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. We will issue a response once we see the compliant. Haven't seen it yet. Media gets the info before we do. 🙏
@thestalwart Joe Weisenthal on x
Absolutely legendary quote here in this SEC complaint. https://www.sec.gov/... HT: @lopezlinette [image]
@binance @binance on x
Our response to the SEC's complaint. https://www.binance.com/...
@tier10k @tier10k on x
[DB] SEC Sues Binance and CEO Zhao of Breaking US Securities Rules: Bloomberg
@justinsuntron H.E. Justin Sun on x
I wanted to take a moment to express my unwavering support for you. As one of my friends, I trust you and believe in your integrity. We are here for you! I am fully aware of your dedication to advancing the cryptocurrency industry, and your abilities and ethics are beyond... http…
@dogetoshi Steven on x
I believe this is the first time SOL, ADA, ATOM, SAND(?) and AXS has been mentioned as securities [image]
@jack @jack on x
@cz_binance Steady lads
@splitcapital Zaheer on x
SEC claiming SOL, ADA, MATIC, FIL, ATOM, SAND etc are all securities. [image]
@tier10k @tier10k on x
The SEC has accused Binance of mishandling customer funds as well as lying to regulators and investors about its operations in 13 charges filed Monday. The regulator said Binance had been mixing “billions of dollars” in customer funds and secretly sending them to a separate... ht…
@spreekaway @spreekaway on x
both coley and brooks testified to SEC [image]
@tier10k @tier10k on x
SEC COMPLAINT VS BINANCE: BINANCE'S US AFFILIATE TRANSFERED AT LEAST $145 MLN TO ACCOUNT OF A ZHAO-CONTROLLED ENTITY, WHICH THEN BOUGHT A YACHT [image]
@dogetoshi Steven on x
SEC filing calls BNB a security [image]
@dogetoshi Steven on x
Not great [image]
@bitfinexed @bitfinexed on x
Binance is wash trading. Exactly what we have been telling you all for years. The entire cryptocurrency market is in reality fewer than twenty players. [image]
@cz_binance @cz_binance on x
Strong together. https://twitter.com/...
@nansen_ai @nansen_ai on x
If you want to monitor Binance's or another exchange's token inflows and outflows in real-time, you can! Track all on-chain activity here: https://pro.nansen.ai/... [image]
@wublockchain Wu Blockchain on x
CZ: Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits. We will issue a response once we see the compliant. https://twitter.com/...
@adamscochran Adam Cochran on x
1/14 Breakdown of SEC filing against Binance/CZ Covers Binance, Binance US, CZ and all his entities. [image]
@collins_belton Collins Belton on x
OK, a quickie. TL;DR. SEC alleges: - Binance/CZ fraudulently repped independence of Binance US and intl - BCZ operating unregistered exchange/BD/clearing agency - $SOL, $ADA, $MATIC, $ATOM, $BNB, $BUSD (!) + more + staking programs are securities - Requests asset freeze (!) https…
@wublockchain Wu Blockchain on x
Bloomberg reported that the US SEC Sues Binance and CEO Zhao of Breaking US Securities Rules. https://www.bloomberg.com/... Earlier, the U.S. CFTC sued Binance and its CEO Zhao for violating U.S. derivatives rules. Today's media sources speculate that Binance may change its CEO. …
@adamscochran Adam Cochran on x
7/14 Claims that at times, CZ moved billions of assets of users funds into Merit Peak an entity he controlled in the US and had transferred those assets to third-parties. Very similar to what SBF had done. [image]
@ryansadams @ryansadams on x
I have no idea if Binance is 100% clean here. Time will tell. But I do know that the SEC declaring that SOL, ADA, MATIC, ATOM, and AXS are securities is a direct attack on crypto. I trust Binance more than i trust the SEC. I trust CZ more than Gensler. What a sad state.
@johnreedstark John Reed Stark on x
Neither the CFTC or SEC case focus on AML and sanctions evasion violations. IMHO, that is the prosecutorial space that has been carved out for a U.S. DOJ case charging Binance. First, US CFTC (derivatives violations) action against Binance. Second, US SEC (securities... https://t…
@gordonjohnson19 Gordon Johnson on x
1/7 Have to hand it to the @SECGov; when reading the @binance lawsuit, it seems they have @binance dead-to-rights. Why? Well, if the wash trading acquisitions are true, in the word's of @Bitfinexed: “Binance cannot operate an honest exchange, because there's no honest demand,... …
@gergelyorosz Gergely Orosz on x
One difference is how Binance hasn't lost customer funds. Or at least we don't know that they'd done it yet. But there sued by the SEC for lying to regulators and mishandling funds (FTX did both). The consequences look to be grim for Binance. https://www.nytimes.com/...
@bretdevereaux Bret Devereaux on x
Y'all remember when Crypto was going to be totally impossible for the government to regulate and would totally enable you to get out from under state power? Not so much, it turns out. I don't want to say I told you so...but I did (https://acoup.blog/...) https://twitter.com/...
@nytimesbusiness @nytimesbusiness on x
“U.S. regulators are putting pretty huge speed bumps for Binance and are continuing to put the crypto world on notice,” said Reena Aggarwal, a finance professor at Georgetown University. https://www.nytimes.com/...
@tier10k @tier10k on x
💀 [image]
@collins_belton Collins Belton on x
In short though, the SEC is alleging that Binance, like Trex, Beaxy, Coinbase, and every other crypto trading platform is essentially operating an unregistered exchange, but also provides clearing services and acts as a BD for its customers, and hasn't registered as any of those.
@adamscochran Adam Cochran on x
5/14 Intermingling of the international and US entities - which gives US nexus exposure to their international entity and employees. Pretty bad and opens them up to more action. [image]
@thestalwart Joe Weisenthal on x
Really good thread from Birb here on the Binance lawsuit, with some breakdown about why some of the coins identified as securities are, from the SEC's perspective, securities. https://twitter.com/...
@bonecondor @bonecondor on x
There's a lot of intro and background on $SOL, but the real meat is that the deflationary mechanism -> investors believe in potential for profit (deflate supply, increase price) -> security [image]
@nansen_ai @nansen_ai on x
Netflow to Binance over the past 24 hours is $778.6M negative on Ethereum - $871.7M in and $1.65B out Over the past hour, netflow on Ethereum continues to be negative at $35.7M on Ethereum - $14.8M in and $50.5M out Track it here https://pro.nansen.ai/... and filter for “Binance”…
@nansen_ai @nansen_ai on x
Here are the top depositors and withdrawers in the past hour You can find them by going to “Exchange Flows”, “Wallets” and then scrolling down to “All Wallets” [image]

Chronicles

The SEC sues Coinbase, alleging the exchange operated as an unregistered broker since at least 2019 and broke the rules by offering “staking”; COIN drops 15%+

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