SEC Investigates Sources of Income and Coinbase Listing

The trading platform Coinbase reported that the US Securities and Exchange Commission (SEC) requested information through the court about the placement of crypto assets and the company’s own profitable products.

Cryptocurrency exchange Coinbase in a quarterly report said that the SEC is investigating the activities of the platform related to the listing of cryptocurrencies and any other projects that generate income for the company. The SEC sent the platform a subpoena to obtain documents and information about its cryptocurrency products.

The exchange has recently faced numerous class action lawsuits. One of them claimed that Coinbase allowed its US clients to trade unregistered securities. According to a separate class-action lawsuit filed in June, Coinbase listed a new Terra Classic token on its platform without disclosing an alleged financial connection to Terraform Labs.

In addition, the US Attorney for the Southern District of New York charged three Coinbase executives with insider trading. Prosecutor Damian Williams said Ishan Wahi, his brother Nikhil Wahi and Sameer Ramani colluded and used Coinbase’s confidential information about the future token listing for profit.

However, the exchange said that resolving existing legal and regulatory issues would not affect its financial results or operations. Coinbase shares fell about 5% on Monday, following a Q2 earnings report that reported a 35% drop in trading fees compared to the previous quarter. Shares of Coinbase surged over 7% to $94.14 on Wednesday.

Recall that earlier Coinbase and the largest asset management company BlackRock entered into a partnership under which BlackRock clients will be able to trade cryptocurrencies. A popular analyst under the pseudonym InvestAnswers believes that the influx of funds into cryptocurrencies from BlackRock clients could push the BTC rate to $773,000.