How Should Crypto Exchanges and Companies Respond to a Wells Notice?
The Securities and Exchange Commission (SEC) has freely made use of the Wells Notice.
More like the inSecurity and Extortion Commissary, using such notices to threaten companies by mere insinuation. Know that the big boys fight back.
Consider a 2012 ruling involving Goldman Sachs. The SEC had sent the company a Wells Notice related to an investigation into its mortgage-related securities. Goldman decided not to disclose the Wells Notice to its investors. Even the SEC did not pursue charges against the company.
Later, a shareholder lawsuit filed alleging that Goldman had failed to disclose the Wells Notice. Still, the court ultimately ruled in favor of the company. Finding that it had no legal obligation to inform others about the notice.
Threats can go both ways when an agency has been captured by the parties it is supposed to regulate.
Within the rather juvenile crypto community, the spat between Coinbase and Ripple became even more heated when Coinbase itself received a Notice. Oh, the hypocrisy runs rampant! Maybe Coinbase could see something like this coming, hence COIN is not a crypto token.
But the point is that there are consequences to being badgered by the SEC, irrespective of whether anything real comes of it. That's manipulation.
or why Coinbase should have been founded offshore!
lol
and... done!
Coinbase debuts international exchange following feud with a U.S. regulator
but only for institutions - for now.
why not?
Congratulations, your post has been curated by @r2cornell, a curating account for @R2cornell's Discord Community.