New court documents show that the US Securities and Exchange Commission (SEC) believes Coinbase was aware it may have violated securities laws prior to the regulator’s lawsuit against the crypto exchange.
In a new lawsuit, the SEC claims that despite the fact that the crypto company knew it was engaging in illegal actions, it made a calculated decision to continue as a means of growing its business.
Coinbase also explicitly discouraged crypto asset issuers from using “problematic statements” in their marketing materials that are “traditionally associated with securities.”
And since Coinbase became a publicly traded company, it has repeatedly informed its shareholders about the risk that the crypto assets traded on its platform could be considered securities and that its conduct could therefore violate federal securities laws – also in the registration statement it now references as evidence that the SEC allegedly blessed its conduct.
These actions clearly show that Coinbase understood that the securities laws may apply to its conduct and knew what rules to consider when evaluating the legality of its conduct, yet made the calculated decision to take this risk in the name of growth of her company.
The SEC initially sued Coinbase last month, alleging it sold unregistered securities after it listed a handful of cryptoassets, including Cardano (ADA), Solana (SOL), and Polygon (MATIC), as securities.
In late June, Coinbase filed a motion to dismiss the case, arguing that the SEC had no jurisdiction in the matter.
Don’t Miss Out – Subscribe to receive email alerts delivered straight to your inbox
Check price action
follow us on Twitter, Facebook And Telegram
Surf the Daily Hodl mix
Generated Image: StableDiffusion
