Shares of Coinbase and Other Cryptos Fall After the SEC Accused Binance of More Than a Dozen Securities Violations

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Shares of Coinbase Global Inc. (COIN) fell 10.1% in midday trading on Monday after the U.S. Securities and Exchange Commission charged rival cryptocurrency exchange Binance Holdings Inc. over a dozen securities law violations. Among some of the SEC’s allegations were that Binance and founder Changpeng Zhao misled investors about corrupt risk controls and trading volumes, as well as concealing who operated the platform. This has raised concerns about increased scrutiny of cryptocurrency trading platforms. It also appeared to weigh on the price of bitcoin, which plunged 5.3%, to put ii on track to close below $26,000 for the first time since March 16. Among other crypto-related stocks, Marathon Digital Holdings Inc. (MARA) slid 6.8%, Riot Platforms Inc. (RIOT) fell 9.0%, and MicroStrategy Inc. (MSTR) lost 8.0%. 5%.

-Tommy Kilgore

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06-05-23 1230ET

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