Coinbase Shares Drop 9.1% After SEC Lawsuit Against Binance

The shares of US cryptocurrency exchange Coinbase closed the June 5 trading session down 9.1% after news broke of the Securities and Exchange Commission’s (SEC) lawsuit against rival Binance and its CEO, Changpeng Zhao.

This has resulted in the company’s market capitalization declining by 13.5%.

The SEC yesterday filed 13 charges with the trading platform, including unregistered offers and sales of BNB and BUSD crypto assets, Simple Earn, BNB Vault and staking products.

The lawsuit also alleges Binance failed to register its Binance.com platform as an exchange, broker-dealer or clearing agency, as did the US division. Zhao has been sued as a “control person.”

The CFTC filed a lawsuit in March against Binance and Zhao. According to the agency, the platform violated the rules for derivatives trading by operating without proper registration and “deliberately evading US law.”