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Coinbase advertising in New York's Times Square

Photo: Richard B. Levine / IMAGO

The U.S. Securities and Exchange Commission (SEC) is suing Coinbase Inc., the largest U.S. cryptocurrency trading platform. In federal court in Manhattan, she has accused the company of operating illegally without first registering with the regulator. Coinbase is operating as an unregistered broker for at least 2019 by handling cryptocurrency transactions and circumventing disclosure requirements to protect investors.

On Monday, the SEC once again sued the world's largest crypto exchange Binance and its founder Changpeng Zhao – this was also about a missing license, among other things.

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Allegation: "Extensive network of deceptions": New lawsuit against the world's largest crypto exchange Binance

"Coinbase's alleged failures deprive investors of important safeguards, including rules to prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine checks," SEC Chairman Gary Gensler tweeted. Shares of Coinbase fell nearly 16 percent in premarket trading after the lawsuit was filed.

Coinbase did not initially respond to a request for comment to Reuters.