Feds Sue Coinbase One Day After Filing Suit Against Binance

The Securities and Exchange Committee filed a lengthy lawsuit against Coinbase on Tuesday, accusing the largest crypto exchange in the US of operating as an illegal, unregistered broker and exchange for its crypto exchange, Coinbase Prime, and its Coinbase Wallet. The legal action comes less than 24 hours after the SEC filed a separate suit against Binance accusing it of running an illegal crypto scheme and engaging in “an extensive web of deception.” It’s only Tuesday, but it’s already looking like one of the shakiest weeks for the crypto industry since last year’s dramatic FTX meltdown. Binance saw hundreds of millions of dollars drain from its exchange in response; Coinbase’s stock plunged 15% after news of the suit broke.

SEC lawyers allege Coinbase have made off with billions of dollars since 2019 by facilitating the buying and selling of crypto assets, which the agency describes as securities. In total, the SEC claims Coinbase made at least 13 “crypto asset securities” available to its customers. Those cryptocurrencies include Solana Labs’ SOL native coin, the Cardano blockchain’s ADA coin, and the Polygon blockchain’s MATIC coin, among others.