Illustration by Alex Castro / The Verge
After months of indications the US Securities and Exchange Commission (SEC) would sue US crypto giant Coinbase, it’s finally happened.
The lawsuit filed Tuesday in the Southern District of New York accuses Coinbase and its parent company, CGI, of breaking securities law by acting as an unregistered broker for its main crypto trading platform, its Coinbase Prime product, and the Coinbase Wallet. In addition to those alleged violations, the SEC is suing over Coinbase’s staking-as-a-service platform that allows its customers to earn a return for participating in “proof of stake” blockchains.
