American cryptocurrency exchange Coinbase intends to postpone its direct listing of shares amid laundering allegations.
Earlier, Coinbase filed a report with the US Securities and Exchange Commission (SEC), in which it announced plans to issue 114.9 million shares. At the same time, the average share price on the Nasdaq Private Market was $343.58, which gives the exchange a market value of $67.6 billion. The maximum price per share reached $375.01.
With a direct listing, investors can sell their assets as soon as the shares are listed on exchanges. There is no need to wait for the expiration of the lock-up period, which usually takes up to six months for a standard IPO.
Why Coinbase delays stock listing?
There are currently no details yet on the reasons for the postponement of the stock listing to April. However, earlier it became known about the decision of Coinbase to pay a $6.5 million fine for falsifying trades in the period from 2015 to 2018.
“Reporting false, misleading, or inaccurate transaction information undermines the integrity of digital asset pricing,” said Acting Director of Enforcement Vincent McGonagle. “This enforcement action sends the message that the Commission will act to safeguard the integrity and transparency of such information.”
According to the Commodity Futures Trading Commission (CFTC), the exchange used the Hedger and Replicator laundering programs for LTC/BTC trading pairs on its GDAX exchange.
With the help of special programs, GDAX created a false image of liquidity and fueled interest in the litecoin cryptocurrency, the regulator said. It is not yet known whether Coinbase’s recognition of laundering trading is related to the transfer of the stock listing.
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