Ark Invest Doubles Down on Coinbase Amidst SEC Crackdown

June 07, 2023

Cathie Wood at Ark Invest, purchased over 400,000 shares of the cryptocurrency exchange, valued at more than $20 million despite the recent Securities and Exchange Commission (SEC) lawsuit against Coinbase. This purchase occurred as Coinbase stock declined following the SEC's legal action. Wood, a long-time crypto advocate, continues to increase Ark's stake in Coinbase in spite of regulatory pressures. The SEC's lawsuit alleges that Coinbase breached securities laws by functioning as an unregistered securities exchange, broker, and clearing agency.

The SEC's crackdown also extended to Binance, Coinbase rival, accusing them of operating illegal platforms for offering and selling crypto asset securities to US investors. Amidst the regulatory actions, crypto industry players argue that tokens are not securities, while the SEC insists otherwise.

William Lemanske