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Second major crypto lawsuit in two days
The Coinbase lawsuit marks the second SEC complaint filed against a major cryptocurrency firm in as many days. On Monday, the federal regulator hit Coinbase competitor Binance, the largest crypto exchange in the world, with 13 charges. Like Coinbase, Binance was also accused of operating as an unregistered exchange, broker-dealer, and clearing agency. The SEC adopted a more aggressive posture against Binance, though, accusing the company and its CEO Changpeng Zhao of engaging in an “expansive web of deception” to sidestep regulators over the years.
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“This case arises from Defendants’ blatant disregard of the federal securities laws and the investor and market protections these laws provide,” the complaint reads. “In so doing, Defendants have enriched themselves by billions of U.S. dollars while placing investors’ assets at significant risk.”
The SEC charges are already sending shockwaves through the stock market, and cryptocurrency holders. On Tuesday, just one day after the Binance suit, investors had reportedly rushed to pull out $778.6 million worth of crypto tokens from the exchange. Binance did not immediately respond to Gizmodo’s request for comment.
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