The Securities and Exchange Commission announced a new probe into Coinbase Global Inc. over whether or not digital assets traded on its platform should have been registered as securities:
Coinbase is facing a US probe into whether it improperly let Americans trade digital assets that should have been registered as securities https://t.co/pUJoHrnZ3p
— Bloomberg Wealth (@wealth) July 26, 2022
From Bloomberg:
Coinbase Global Inc. is facing a US probe into whether it improperly let Americans trade digital assets that should have been registered as securities, according to three people familiar with the matter. The company’s shares dropped as much as 9.2%.
The US Securities and Exchange Commission’s scrutiny of Coinbase has increased since the platform expanded the number of tokens in which it offers trading, said two of the people, who asked not to be named because the inquiry hasn’t been disclosed publicly. The probe by the SEC’s enforcement unit predates the agency’s investigation into an alleged insider trading scheme that led the regulator last week to sue a former Coinbase manager and two other people.
Coinbase’s response:
“We are confident that our rigorous diligence process—a process the SEC has already reviewed—keeps securities off our platform, and we look forward to engaging with the SEC on the matter.”
In response to the @SECGov probe into @coinbase, CLO @iampaulgrewal says: “We are confident that our rigorous diligence process—a process the SEC has already reviewed—keeps securities off our platform, and we look forward to engaging with the SEC on the matter.”
— Eleanor Terrett (@EleanorTerrett) July 26, 2022
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This new probe comes just days after the SEC announced insider trading charges against a former Coinbase product manager:
Today we announced insider trading charges against a former Coinbase product manager, his brother, and his friend for perpetrating a scheme to trade ahead of multiple announcements regarding certain crypto assets that would be made available for trading on the Coinbase platform.
— U.S. Securities and Exchange Commission (@SECGov) July 21, 2022
Now, this brings us to CNBC’s Jim Cramer who tweeted, “I have been waiting for this SEC investigation of Coinbase to happen for ages. Now here we go. You can’t just do what you want with securities in this country”:
I have been waiting for this SEC investigation of Coinbase to happen for ages. Now here we go. You can't just do what you want with securities in this country..
— Jim Cramer (@jimcramer) July 26, 2022
Oh, really?
From a year ago, here is calling Coinbase a “long term buy” and that “we think it will go much higher”:
coinbase is a long term long term buy. i have said that endlessly. I said buy some and then wait until it came down. we think it will go much higher. If you are judging this by today's action you are a fool. https://t.co/asOni2sX7y
— Jim Cramer (@jimcramer) April 14, 2021
“We like Coinbase to $475”:
We like Coinbase to $475
— Jim Cramer (@jimcramer) April 14, 2021
It’s kind of weird to build a position in a stock that you think the SEC will investigate, no?
Coinbase Is Not Loose Change: How I'm Building a Position https://t.co/NKvWgi1Cxy
— Jim Cramer (@jimcramer) April 16, 2021
Over to you, Jim. Please explain:
Say what you want,and you certainly do,but you`re not an honest person. @jimcramer
He goes from this
👇👇
Jim Cramer@jimcramer
We like Coinbase to $475
10:02 AM · Apr 14, 2021·TweetDeckTo This
👇👇 https://t.co/KuzgnwU0xz— Digital Perspectives (@DigPerspectives) July 26, 2022
As of the publication of this post, Coinbase was trading at $56.91, down about 15% on the day.
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