By Frances Yue
Hear from Mike Novogratz at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York. The Galaxy Digital CEO has ideas about navigating the crypto winter.
Coinbase under SEC scrutiny
Coinbase Global Inc. /zigman2/quotes/225893452/composite COIN -7.80% said it has received investigative subpoenas and requests from the U.S. Securities and Exchange Commission, pointing to potential further pressure facing the crypto exchange, after it posted wider-than-expected losses in the second quarter.
The crypto exchange said Tuesday it has received investigative subpoenas and requests from the SEC “about certain customer programs, operations, and existing and intended future products”, including its processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products, according to a quarterly filing .
Coinbase has been reportedly facing a U.S. probe into whether it improperly let Americans trade crypto that should have been registered as securities, according to a Bloomberg report in July.
In a shareholder letter also published Tuesday, Coinbase said the SEC in May sent the company a voluntary request for information, including its listings and listing process, but that the exchange doesn’t yet know if this inquiry will become a formal investigation. “We regularly get formal and informal questions from regulators about our views on the development of the cryptoeconomy, our products, and our operations,” the company wrote in the shareholder letter.
Treasury Department sanctions Tornado Cash
The U.S. Treasury Department’s Office of Foreign Assets Control on Monday sanctioned Tornado Cash, which allows users to conduct private crypto transactions.
As a result, Tornado Cash’s property and interests in property in the U.S. will be blocked, according to a statement by the Treasury Department Monday.
The platform has been used to launder more than $7 billion worth of cryptocurrencies since its creation in 2019, including $455 million stolen by the Lazarus Group, a North Korean state-sponsored hacking group, according to the statement.
Tornado Cash was also allegedly used to launder more than $96 million in the hack on Harmony blockchain’s Horizon bridge in June and over $7.8 million from the exploit against Nomad bridge earlier this month, the Treasury department said.
Crypto companies, funds
Shares of Coinbase Global Inc . tanked 10.9% to $83.90 on Thursday, and they were down 5.6% over the past five trading sessions. Michael Saylor’s MicroStrategy Inc. /zigman2/quotes/202561856/composite MSTR -0.08% went down 0.5% Thursday to $334.08, while the shares went up 7.8% over the past five days.
Mining company Riot Blockchain Inc . /zigman2/quotes/209538617/composite RIOT -6.01% shares gained 3.7% to $9.44 Thursday, and rallied 15.6% over the past five days. Shares of Marathon Digital Holdings Inc. /zigman2/quotes/205886758/composite MARA -5.70% rose 4.5% to $17.09, with a 27.8% gain over the past five days. Another miner, Ebang International Holdings Inc . /zigman2/quotes/219243771/composite EBON -4.36% saw shares up 1.8% to $0.60 on Thursday, for a 13% gain over the past five days.
Overstock.com Inc. /zigman2/quotes/200022359/composite OSTK -4.02% ’s shares added 3.5% to $30.95. The shares gained 8.9% over the five-session period.
Shares of Block Inc. /zigman2/quotes/205989440/composite SQ -2.91% , formerly known as Square, lost 3.3% to $85.88, and were down 4.2% for the week. Tesla Inc . /zigman2/quotes/203558040/lastsale TSLA -1.44% shares dipped 2.8% to $858.83, down 7.2% over the past five days.
PayPal Holdings Inc. /zigman2/quotes/208054269/composite PYPL -1.89% edged up 0.1% to $99.05, contributing to a 2.1% gain over the five-session stretch. Nvidia Corp. /zigman2/quotes/200467500/composite NVDA -3.75% shares retreated 1% to $179.82, looking at a 6.7% loss for the past week.
Advanced Micro Devices Inc. /zigman2/quotes/208144392/composite AMD -4.55% shares declined 0.7% to $98.36 on Thursday, 5.3% lower from five trading days ago.
Among crypto funds, ProShares Bitcoin Strategy ETF /zigman2/quotes/230440344/composite BITO +0.76% picked up 2.1% to $14.92 Thursday, while its Short Bitcoin Strategy ETF /zigman2/quotes/207703863/composite BITI -0.75% dropped 2.2% to $32.34. Valkyrie Bitcoin Strategy ETF /zigman2/quotes/230473388/composite BTF +0.53% added 2.1% to $9.26, while VanEck Bitcoin Strategy ETF /zigman2/quotes/230997909/composite XBTF +0.56% traded 2.8% higher to $23.65.
Grayscale Bitcoin Trust /zigman2/quotes/203330852/delayed GBTC -0.68% advanced 1.8% to $15.23.
Regulators Weigh Asking Hedge Funds to Report Crypto Exposure (The Wall Street Journal)