American investment management firm, Ark Invest on Tuesday, June 6 purchased more Coinbase shares in spite of the recent SEC lawsuit against the crypto exchange giant.
In a recent development, Ark Invest remains bullish on Coinbase which was served with a lawsuit by the Securities and Exchange Commission yesterday. In the wake of the lawsuit, Coinbase stocks dropped sharply as reported by TheBlock.
Ark Innovation ETF fund’s manager confirmed on Tuesday that the company purchased 329,773 Coinbase shares. The Ark Next Generation Internet ETF purchased 53,885 shares, while Ark Fintech Innovation ETF purchased 35,666 shares. Based on the stock’s closing price of around $52 on Tuesday, the transactions totaled $21.64 million.
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The transaction was made as Coinbase’s stock price dropped over 21% before closing down 12% following the litigation. The SEC sets its target toward Coinbase in a new lawsuit where it alleged that the crypto company violated regulations by offering unregistered securities to customers.
In response, Coinbase said that it will fight the legal battle at the Supreme Court. Coinbase legal chief also stated that he is disappointed but not surprised that the Commission decided to take legal action against the company.
The lawyer further added that despite the action, Coinbase will continue its business as usual stressing that legislation that allows “fair rules” to be developed is the solution.
“The solution is legislation that allows fair rules for the road to be developed transparently and applied equally, not litigation,” he said
SEC Clamps down on Binance
Coinbase is not the only crypto exchange to have faced litigation from the SEC in recent times. On Monday, June 5, the Commission served Binance a lawsuit with 13 violations including offering unregistered securities and illegally operating an unregistered crypto exchange.
The SEC listed Binance’s native token BNB and its stablecoin BUSD among other third-party cryptocurrencies as unregistered securities. The lawsuit negatively impacted the global crypto market cap, which fell below $53 billion. However, Binance refuted the SEC’s classification of BNB and BUSD as securities, stating that it does not represent any investment contract.
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Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.