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The SEC has put Coinbase on notice for allegedly breaking securities laws

Illustration of the Coinbase wordmark on a teal, blue, and black background with circular patterns.
Illustration by Alex Castro / The Verge

Coinbase execs revealed today that the crypto exchange has received a “Wells Notice” from the Securities and Exchange Commission, indicating that after an investigation, the agency’s staff plan to recommend some kind of enforcement action. That could include charges or lawsuits, but none of that has happened yet.

Last month, the SEC reached a settlement with Kraken over its crypto staking operation, where the company paid a $30 million fine and shut down US operations right around the same time it sent another Wells Notice to the crypto firm Paxos over its minting of the Binance USD (BUSD) token.

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