Coinbase shares rise despite US securities regulator lawsuit

Coinbase shares rise despite US securities regulator lawsuit

Coinbase shares rise despite US securities regulator lawsuit

The US cryptocurrency exchange Coinbase is being sued by the US Securities and Exchange Commission (SEC). The allegation is that the company offered unregistered securities and thereby violated securities law. Despite this legal challenge, Coinbase shares have increased significantly in value recently.

Coinbase shares have risen more than 50 percent since the lawsuit was filed, according to data from TradingView. On June 6th the price was around $52 per share, while on July 7th it was already at $78.7. Overall, the value of the shares has increased by 133 percent in the last six months. Over twelve months, an increase of almost 50 percent has been recorded.

Despite this impressive growth, some Coinbase executives have repeatedly sold shares. On July 6, CEO Brian Armstrong and other senior executives sold a total of 88,058 shares worth about $6.9 million. The head of accounting, Jennifer Jones, had previously sold 74,375 shares worth $5.2 million.

In contrast, some large investors continue to hold their shares in Coinbase. For example, Cathie Wood's investment firm ARK Invest bought 400,000 shares of Coinbase in early June and has not sold any of them so far. Wood has already stated that the price of Coinbase shares will rise if the price of Bitcoin rises. She also reiterated her belief that Bitcoin will one day be worth $1 million per coin.

It remains to be seen how Coinbase's legal situation will develop. The SEC lawsuit casts a shadow over the company, but rising stock prices show that investors still have confidence in Coinbase. It remains exciting to see how the case will develop and what impact it will have on the cryptocurrency market.

Source: TradingView, SEC, Cointelegraph