Coinbase shares hit an 18-month high after Binance charges
Shares of crypto exchange Coinbase (COIN) hit an 18-month high after rival exchange Binance and its former CEO Changpeng Zhao pleaded guilty to money laundering and sanctions violations in the United States.
On November 27, Coinbase closed at $119.77, the highest since May 5, 2022, when it closed at $114.25, according to TradingView data. Afternoon trading sees little activity.
The number boosts Coinbase shares to around 256.5% year-to-date, although it is still down 65% from its November 12, 2021, all-time high of nearly $343.
Coinbase's share increase comes just shy of a week since Binance and founder Changpeng “CZ” Zhao pleaded guilty to counterfeiting money, violating US sanctions and operating an unauthorized money-transmitting business.
Zhao and Binance settled with the US for $4.3 billion, which included Zhao stepping down as CEO and Binance agreeing to comply with DOJ and Treasury regulators for up to five years.
Related: Binance payments prove ‘following the rules' is the right decision – Coinbase CEO
Last year, Coinbase weathered significant headwinds in US spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).
According to an analysis by Bloomberg ETF analyst James Seifert, Coinbase is the custodian of 13 of the 19 crypto ETF positions currently pending with the Securities and Exchange Commission.
Coinbase, however, is facing a lawsuit from the SEC that says the exchange is not registered with the regulator and has listed several symbols that violate US securities laws.
Coinbase tried to deny the charges and questioned the SEC's authority to police crypto.
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