The crypto bear market hasn't been kind to Coinbase, following its recent trading allegations and a massive drop in shares.
Cathie Wood’s investment company Ark Invest has recently sold a total of over 1.4M shares of cryptocurrency exchange Coinbase, following the SEC’s investigation on whether the latter illegally allowed Americans to trade digital assets that should have been registered as securities.
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According to the official announcement issued on July 27th, three of the firm’s funds dropped a huge amount of shares, including Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF, and Ark Fintech Innovation ETF, which sold 1,133,495, 174,611, and 110,218 COIN shares, respectively.
The news arrives after Coinbase shares yesterday dropped by 21.08% and sat at $52.93, losing about a fifth of their value.
As previously mentioned, the crypto exchange is currently facing a US probe, however, Paul Grewal, CLO of Coinbase, took two Twitter and mentioned:
"We are confident that our rigorous diligence process - a process the SEC has already reviewed - keeps securities off our platform, and we look forward to engaging with the SEC on the matter."
It seems like the cryptopocalypse is bringing Coinbase down left, right, and center, as its digital shares managed to decline to a record low of $40.30.
Likewise, back in June, the company released around 18% of its employees, following in the footsteps of Gemini, Huobi Global, Banxa, Crypto.com, and Robinhood, which also reduced their headcount.
