On September 1, 2021, Coinbase, Inc. (“Coinbase”), a wholly-owned subsidiary of Coinbase Global, Inc., received a “Wells Notice” from the Staff (“Staff”) of the Securities and Exchange Commission (“SEC”) stating that the Staff has advised Coinbase that it made a “preliminary determination” to recommend that the SEC file an enforcement action against Coinbase alleging violation of Sections 5(a) and 5(c) of the Securities Act of 1933, as amended (the “Securities Act”), relating to Coinbase’s Lend program which was announced on June 29, 2021 and which is open for pre-enrollment but has not yet been launched. The recommended action may involve a civil injunctive action and may seek other remedies. Brian Armstrong made a series of tweets which can be found on his Twitter feed (@brian_armstrong). For more information relating to Coinbase’s Lend program, see https://www.coinbase.com/lend.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Nice. Coinbase executives dumped Coinbase shares the same day as their Wells Notice.