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Coinbase stock drops after SEC Wells notice, a possible prelude to ‘enforcement action’

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American crypto giant Coinbase received a Wells notice today from the Securities and Exchange Commission. In the wake of Coinbase’s filing regarding the Wells notice, shares of the company are off sharply in after-hours trading.
Per a Coinbase SEC filing regarding the matter, the company writes that the government agency’s staff has “advised the Company that it made a ‘preliminary determination’ to recommend that the SEC file an enforcement action against the Company alleging violations of the federal securities law.”
The SEC also took legal action Wednesday

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