SEC Sues Binance and Coinbase

Jonathan Yerushalmy and Alex Hern, the Guardian:

On Monday, after months of discussions, threats and warnings, the US Securities and Exchange Commission (SEC) took aim at the most powerful force in the world of cryptocurrencies.

The US financial watchdog accused the crypto exchange Binance and its founder Changpeng Zhao of operating a “web of deception,” charging him and his exchange with 13 offences.


On Tuesday, the SEC accused another crypto platform, Coinbase, of putting customers at risk by operating as an “unregistered broker, exchange and clearing agency”.

Matt Levine of Bloomberg has the full rundown.

Ryan Broderick:

The Twitter account @unusual_whales noticed some very curious activity. Someone opened a bunch of puts on Coinbase’s stock on Monday and ended up making millions of dollars on the news of the SEC suit against the exchange. How lucky is that?!

Sounds like somebody is shocked — shocked — to find that gambling is going on at Coinbase.