The US Securities and Exchange Commission (SEC) has launched an investigation into Coinbase.
The SEC is trying to see if the crypto exchange improperly allowed trading in several tokens that should have been registered as securities.
Coinbase and the SEC has been at loggerheads recently.
Last week, the SEC saw to the arrest of Coinbase’s former employee and two of his associates for alleged wire fraud.
As part of the insider trading case revealed last week, the SEC took a bold step by calling nine cryptocurrencies — seven of which are currently listed by Coinbase — securities.
In a July 21 blog post, Coinbase was adamant that it does not list securities.