The US regulator SEC has targeted one of the largest Bitcoin exchanges after suing Tron founder Justin Sun. It was noteworthy that before the regulatory move, stock market executives turned a large amount of company shares into cash!
SEC lawsuit against giant Bitcoin exchange
On March 23, Coinbase CEO Brian Armstrong confirmed that the exchange has received a Wells Notice from the SEC focusing on staking services and cryptocurrency requests. cryptocoin.com We have included the content of the Notice and Coinbase’s explanations in this article.
The Wells Statement, released Wednesday, announcing the SEC’s intent to impose sanctions, was reinforced by a series of tweets from the exchange’s Chief Legal Officer, Paul Grewal. In its blog post, he notes that the SEC is focusing on several primary product offerings, including the exchange’s staking service Earn, the institutional arm Prime, and the exchange’s consumer-facing Wallet product.
Coinbase executives sell $7.4 million worth of shares
According to Dataroma data, Coinbase employees (including CEO Brian Armstrong and other executives) have sold approximately $7.4 million of company stock in the past 30 days. The $580 million sale was driven by CEO Brian Armstrong. In total, 60,000 shares were sold for $3.56 million between March 3-15 and approximately 30,000 shares were sold on March 21 for $2.24 million.
At the same time, other Coinbase executives, including senior Coinbase executive Brock Lawrence, chief accounting officer Jones Jennifer, and chief legal officer Grewal Paul, sold shares worth a total of $1.68 million. The recent stock sales are as follows:
What does the Wells Statement mean for Coinbase?
Coinbase will continue to cooperate with all governmental and regulatory bodies around the world as it strives to develop clear rules to regulate the cryptocurrency market. According to sources, the SEC has issued a “preliminary ruling” recommending action against Coinbase. Potential litigation may include measures such as injunctive relief requests, cease and desist orders, or civil fines.
A “Wells Statement” is an informal notice issued by the SEC prior to a civil action against a US listed company. The listed company that receives the notice can contact and negotiate with the SEC before filing a formal lawsuit. Under US law, when the company received the “Notice of Wells,” the SEC formally initiated a series of investigation and complaints procedures, also known as the Wells procedure.
SEC ramps up crackdown on Bitcoin and cryptocurrencies
Earlier this year, the SEC sent a similar Wells Notice to Paxos, the company authorized to issue stablecoin BUSD. Many believe stablecoins are a highlight for commission. The move led Jesse Powell, co-founder and CEO of longtime crypto exchange Kraken, to state that regulators in the US are the main obstacle to crypto growth. A lawsuit was filed against Tron founder Justin Sun yesterday.
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