Friday, 9th June. As the week comes to an end we can focus on the highlights of the crypto industry over the past few days.
SEC sues Coinbase
The Securities and Exchange Commission (SEC) filed a lawsuit against crypto exchange Coinbase just one day after the start of the trials against Binance.
The regulator alleges that the platform violated securities laws. In the view of the agency, these tokens fit the given definition: SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH and NEXO.
The SEC also claimed that Coinbase illicitly combines three functions in itself – as a broker, an exchange and a clearing agency – which are usually split up in traditional markets. The Coinbase Earn staking program caught the regulator’s eye as well.
“Since at least 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities. Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without having registered any of those functions with the Commission as required by law,” the suit says.
According to the SEC, the lack of recordkeeping deprived Coinbase customers of critical protective measures, including regulatory inspections, documentation requirements, and conflict of interest prevention.
As per the lawsuit, the holding company Coinbase Global Inc. is the supervisor of the exchange, implying that it is accountable for certain breaches of the company.
Amid the complaint, shares of the crypto exchange sank 19% in a few hours – from $58 to $47. Most of the digital assets listed by the SEC showed losses as well.
Apple unveils its first mixed-reality headset
Apple, the tech giant, has introduced the $3499 Apple Vision Pro, an augmented reality headset.
The company refers to the new product as “the first spatial computer,” scheduled to debut in early 2024.
The device is powered by the M2 and R1 chips, thus making the product both silent and ultrafast.
“Through tight integration of hardware and software, we have engineered an autonomous space computer in a compact wearable form factor that is the most advanced personal electronic device ever,” said Mike Rockwell, Apple’s vice president of technology development group.
What’s more, the Apple Vision Pro incorporates both AR and VR functionality. The app interface is superimposed on the digital environment, allowing you to control the device with your eyes, hands and voice.
SEC: Binance.US revenue hit $410.9M since launch
From the inception on Feb. 4, 2019, through April 30, 2023, the U.S. division of Binance brought $410.9 million in revenue. You can find the data in the SEC report for the lawsuit against the bitcoin exchange’s affiliate.
Sachin Verma, an Assistant Chief Accountant of the Commission, filed the paper. The expert summarized the financial data provided by BAM Trading Services.
According to analysts, the firm’s total gross profit for the period amounted to $224.7 million. The highest values happened to be in 2021, the period of a bull market.
The report filed as part of this lawsuit carries a $13.5 million penalty for underpayment of taxes.
It was June 5 when the SEC subpoenaed Binance and Changpeng Zhao. The regulator raised 13 charges, including the sale of unregistered securities.
It was reported later that the Commission’s claims were similar to those made against the run-down crypto exchange FTX and its subsidiary Alameda Research.
Prior to that, a lawsuit against Binance and its CEO Changpeng Zhao was filed by the CFTC.
As you may remember, Shark Tank investor and star of the TV show Kevin O’Leary described the SEC’s actions as “cutting off the oxygen” to Binance and Coinbase.
Kraken fixes gateway issues after delay in withdrawals
Cryptocurrency exchange Kraken has straightened out malfunctions in Bitcoin, Ethereum and ERC-20 tokens gateways that were causing delays in deposits and withdrawals.
The problem occurred at 10:44 a.m. on June 6. A warning was issued at the time by the platform regarding potential difficulties in depositing and withdrawing assets.
Half an hour later, the technical team of the exchange fixed the error, saying that the processes of input and output came back to normal.
That same day, Kraken suspended the futures platform for 10 minutes. The company referred to the ongoing maintenance of the site.
Back in April, the bitcoin exchange filed a lawsuit against the Internal Revenue Service (IRS), which required the platform to provide user data. Kraken denies the regulator’s right to receive details of transactions, calling the IRS demands “an unwarranted treasure hunt.”
The requirements of the authority apply to the users who have a 12-month trading volume over $20,000 between 2016 and 2020. Regulator representatives said that their actions are aimed at identifying tax evaders.
To recap, in March Kraken confirmed the launch of its own bank, despite the challenges presented by regulators.