Binance and Coinbase are both alleged to have violated the law. (REUTERS)

Questions Surrounding the Viability of Cryptocurrency Companies Following SEC Lawsuits

Adarsh V.KJune 11, 23Blockchain, Bloomberg, Coinbase, cryptocurrency, New York

After the crypto winter and the alleged fraud committed by FTX founder Sam Bankman-Fried, lawsuits have now emerged. The US Securities and Exchange Commission last week filed charges against the world’s largest cryptocurrency exchanges, Binance and Coinbase, deepening tensions between the government and a volatile industry that has been marked by scandals and market crashes. Binance and Coinbase allegedly broke the law by operating as securities exchanges without registering their business with the SEC. Along with the CEO, Binance faces additional charges, among other accusations, of diverting customer funds to…

The move comes just one day after the agency took aim at Binance.

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SEC Files Lawsuit Against Coinbase for Alleged Breach of Securities Laws

Nitin MisraJune 6, 23Coinbase, cryptocurrency, SEC

The Securities and Exchange Commission has taken regulatory action against Coinbase, the largest cryptocurrency trading platform in the US, alleging that it acted as an unregistered national securities exchange, broker, and clearing agency. The SEC pointed out that traditional securities markets typically separate brokers, exchanges, and clearing agencies, but Coinbase “intertwines” these services. This is just the latest regulatory action against a major cryptocurrency company. The agency argued that because Coinbase did not register as a broker, national exchange or clearinghouse, it prevented investors from receiving protection. These include SEC…