Coinbase is rapidly moving towards a non-regulative window breaking the legit ground rules. The crypto exchange has gone through multiple lawsuits in the last few months from different law authorities including SEC.
And yet again, Coinbase is under the bad lights of news headlines. Cathie Wood, CEO at Ark Investment Management, said the company sold some of its stake in Coinbase Global Inc. in July.
Ark Investment Sells 1.1 Million Coinbase Shares
Ark sold the stakes just after SEC rolled out a report probing the crypto exchange around certain security listings. Wood continued mentioning several risk factors involved with Coinbase. The ETF manager of Ark sold approximately 1.1 Million shares on a normal trading day, which was very little.
The company still stands as a major shareholder with five million Coinbase shares according to Ark’s data. Ark opted to sell out the share amid the SEC probe report on Coinbase.
The report clearly mentions that Coinbase has not registered certain securities with the SEC. These securities will soon be potentially delisted. On the flipside, Ark said they are pondering on Coinbase’s business model. If the crypto exchange registers the securities with SEC the change can be tremendous.
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Cathie Wood Ponders on Coinbase Growth Factors
Ark further said they will remain bullish considering the crypto market. However, the company will look for a favourable alternative looking at Coinbase. Adding to this, Cathie Wood said they are not influenced by any entity to make a decision.
The company is not triggered by charges probed by the SEC including insider trading scheme in Coinbase. Ark Investment Management still holds the third-largest share in the crypto exchange, holding 8.95 Million shares.
Coinbase is perpetually falling under the bad light. In the last few months the crypto exchange company has faced several lawsuits. Whether it’s about unregistered securities or insider trading, or misleading customers. The company has seen it all. It seems like the company is moving towards a dark side era leaving no room behind.
Source: https://www.thecoinrepublic.com/2022/08/10/ark-investment-sold-1-1-million-coinbase-shares-amid-sec-probe/