Cryptocurrency exchange Coinbase (COIN) is being investigated by the U.S. Securities and Exchange Commission (SEC) over whether it illegally lets people trade digital assets that should be registered as securities.
The investigation is being led by the SEC’s enforcement unit and comes days after the Wall Street regulator said that it is investigating instances of insider trading by former employees of Coinbase.
U.S. prosecutors last week charged a former Coinbase employee and two of his associates with wire fraud in the first insider trading case involving cryptocurrencies.
The SEC’s scrutiny of Coinbase has increased in recent months after the trading platform expanded the number of digital coins and tokens that it offers for trading.
Coinbase stock is down 73% this year and currently trading at $67.07 U.S. per share
