Coinbase Staked Ether Experiences a Surge in Redemptions Amid SEC Lawsuit

• Coinbase witnessed high-staked ether redemptions.
• 27,280 cbETH were redeemed on June 6 alone.
• This was a follow-up to the SEC’s recent lawsuit against the exchange.

Following the disclosure of the SEC’s lawsuit against Coinbase on June 6, there has been a notable increase in users unstaking their staked ether on the exchange. On-chain data compiled by blockchain firm 21 reveals that during this period, a total of 39,550 Coinbase Staked Ether (cbETH) valued at $75 million have been burned for redemption.

Simultaneously, approximately 9,600 cbETH have been minted, resulting in a net outflow of around 29,900 cbETH ($56.8 million) for the liquid staking token.

Coinbase witnessed 27,280 cbETH redemptions on June 6

Significant redemption activity was observed on June 6, with a total of 27,280 cbETH tokens being redeemed. This represents one of the largest single-day cbETH redemptions since the Shapella upgrade allowed for withdrawals.

Despite the ongoing legal proceedings, Coinbase remains the second-largest entity in terms of staked ether, with 2.3 million ether ($4.2 billion) staked on behalf of its customers. Lido Finance currently holds the top position with 7 million ether ($12.9 billion) staked.

During the Bloomberg Invest conference, Coinbase’s CEO, Brian Armstrong, reaffirmed the exchange’s commitment to providing staking services, including cbETH, despite the legal challenges.

The regulatory environment surrounding centralized cryptocurrency exchanges is showing signs of growing intensity. Within a span of two days, two major crypto exchanges, Coinbase and Binance, have faced legal action from the SEC. The lawsuit against Coinbase represents the second instance of litigation against a prominent exchange during this time period.