SEC Investigating Coinbase Over Crypto Offerings, Listing Process

The US Securities and Exchange Commission (SEC) has issued subpoenas from Coinbase for documents and information relating to its crypto products.

Coinbase (COIN), a publicly traded company on the Nasdaq exchange, said Monday the SEC was seeking information on how it goes about listing specific assets as well as its operations and customer programs.

The investigation is also seeking information on Coinbase’s staking programs as well as its yield-generating products, according to a note within the exchange’s quarterly report. CoinDesk first reported the news.

It’s the latest headache for the embattled exchange which has been staring down multiple class action lawsuits including one alleging it allowed its US customers to trade unregistered securities.

The SEC is also investigating Coinbase over the same matter. In a separate matter, the regulator has also charged Coinbase’s former product manager, Ishan Wahi, for insider trading.

A separate class action lawsuit, filed in June, reportedly alleges Coinbase failed in its duty of care by listing the revamped Terra Classic token on its platform and neglected to disclose an alleged financial connection to Terraform Labs.

Despite a shaky year, Coinbase said in its report it believes the resolution of its existing legal and regulatory woes relating to the SEC would not affect its financial outcomes, health or operations. Though the company did concede it was possible the developments could have an adverse effect on the results of its operations.

A Coinbase spokesperson did not immediately return a request for comment.

COIN shares were down about 5% in after-hours trading on Monday following its second-quarter earnings report which posted a 35% decline in trading fees from the prior quarter.

Coinbase’s shares traded more than 7% higher Wednesday to around $94.14. COIN shares are up 49% for the month of August bolstered by news of a partnership with asset manager BlackRock.

Source: blockworks.co