Coinbase shares plummet as SEC sues rival crypto exchange Binance

Companies • June 5, 2023, 12:41PM EDT
The Block

Quick Take

  • Coinbase shares lost as much as 12% after word spread that the SEC was suing Binance. 

Shares of U.S.-based cryptocurrency exchange Coinbase plummeted after word broke that the Securities and Exchange Commission was suing rival trading platform Binance.

Shares declined almost 12% from their Friday close after news of the lawsuit first hit. They've since recovered slightly and are down 10.3% at $57.91, according to TradingView.

The SEC alleges Binance, the world's largest crypto trading platform, and affiliated companies misled customers and misdirected funds to a separate investment fund owned by the company's CEO, Changpeng 'CZ' Zhao.

Coinbase has had its own issues with the SEC, including an investigation into the company’s digital asset listings, staking-as-a-service, institutional trading and wallet services. The company has, in turn, sued the SEC in the hope of forcing the regulatory agency to define rules regarding the regulation of digital assets.

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U.S. regulators have been ramping up scrutiny of cryptocurrency trading and the platforms that facilitate such activity, especially since the fallout caused by the collapse of the FTX exchange.

Coinbase didn't immediately respond to a request for comment from The Block.


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About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.

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