It’s been just revealed that Cathie Wood’s Ark Invest is buying Coinbase stock following the SEC scandal. Check out the latest reports below.
Coinbase stock becomes appealing amidst SEC scandal
According to recent data from Cathie Wood’s ARK Invest, the hedge fund made three purchases of Coinbase (COIN) stock on June 6th, amounting to a total of 419,000 shares worth over $21 million. This move comes after the recent SEC lawsuit against Coinbase caused a drop in share prices.
The SEC first filed a lawsuit against Coinbase earlier this week, alleging that the products it offers were all “crypto asset securities” that fell under the jurisdiction of securities laws.
According to the regulatory agency, Coinbase is being sued for allegedly “operating as an unregistered securities exchange, broker, and clearing agency” and “failing to register the offer and sale of its crypto asset staking-as-a-service program.”
According to the SEC, Coinbase was accused of disregarding the “Howey test,” a long-standing decision by the Supreme Court that outlines standards for businesses to determine if a transaction qualifies as an investment contract or not, in order to increase profits.
Coinbase in the news
It’s been just revealed that the former Coinbase product manager Ishan Wahi and his brother, Nikhil Wahi, just reached an agreement with the U.S. Securities and Exchange Commission (SEC). This is to settle charges arising from an insider trading scheme involving crypto assets. Check out more reports about this below.
In July 2022, Ishan Wahi was accused by the SEC of providing confidential information to his brother and friend, Sameer Raman, regarding the crypto assets that Coinbase was going to support.
It is common for the value of digital assets to increase upon the announcement of their listing on a platform. Consequently, Nikhil Wahi and Raman acted on a privileged tip and purchased tokens, ultimately accumulating $1.5 million in illegal profits.
