Why Coinbase Stock Plummeted by Over 8% Today
Coinbase Global (NASDAQ: COIN), the frequently volatile stock backing the namesake cryptocurrency exchange platform, didn't have a good Wednesday on the market. The company's shares slid by more than 8% across the day due in no small part to the actions of a market enforcer.
In a regulatory filing, Coinbase disclosed that the Securities and Exchange Commission (SEC) has served it a Wells Notice. This is a formal notification from the SEC that the recipient may be in violation of securities law and risks facing enforcement from the regulator. A Wells Notice is often one of the last steps prior to the SEC filing formal charges for wrongdoing.
In the filing, Coinbase said that it believed the notice is related to facets of its business related to spot markets, and its services Coinbase Earn, Prime, and Wallet.
Source Fool.com
