Shares of the cryptocurrency exchange Coinbase (COIN) reached an 18-month peak following the guilty pleas of Binance and its former CEO, Changpeng Zhao, for money laundering and sanctions violations in the United States.
On November 27, Coinbase concluded at $119.77, marking its highest point since May 5, 2022, when it closed at $114.25, according to TradingView data. There has been minimal movement in after-hours trading.
This places Coinbase shares up approximately 256.5% year-to-date, although they remain 65% lower than their all-time high of nearly $343 on November 12, 2021.
Coinbase’s surge in shares occurred less than a week after Binance and its founder, Changpeng “CZ” Zhao, admitted guilt to charges of money laundering, violating U.S. sanctions, and operating an unlicensed money-transmitting business.
In their settlement with the U.S., Zhao agreed to step down as CEO, and Binance committed to DOJ and Treasury compliance oversight for up to five years, involving a payment of $4.3 billion. Additionally, over the past year, Coinbase has experienced significant gains, particularly with anticipated approval for U.S. spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).
According to analysis by Bloomberg ETF analyst James Seyffart, Coinbase serves as the custodian for 13 out of the 19 spot crypto ETFs currently awaiting approval from the Securities and Exchange Commission.
Coinbase, on the other hand, is confronted with a lawsuit from the SEC alleging that the exchange failed to register with the regulatory body and listed numerous tokens that violated U.S. securities laws.
In an attempt to dismiss the lawsuit, Coinbase raised concerns about the SEC’s jurisdiction in overseeing the crypto industry.