Coinbase warned by SEC of potential securities charges
In this photo illustration, the Coinbase logo is displayed on a smartphone screen.
Rafael Henrique | SOPA Images | Lightrocket | Getty Images
The Securities and Exchange Commission issued crypto exchange Coinbase a Wells notice, warning the company that it identified potential violations of U.S. securities law.
Coinbase shares fell nearly 12% in extended trading after the news broke on Wednesday, adding to an 8.16% drop during regular traidng hours.
“Based on discussions with the Staff, the Company believes these potential enforcement actions would relate to aspects of the Company’s spot market, staking service Coinbase Earn, Coinbase Prime and Coinbase Wallet,” Coinbase said in a regulatory filing. “The potential civil action may seek injunctive relief, disgorgement, and civil penalties.”
The SEC has ramped up its enforcement of the crypto industry, bearing down on companies and projects that the regulator alleges were hawking unregistered securities. Reports first surfaced of an SEC probe into Coinbase in mid-2022.
Months before the collapse of FTX in November, crypto markets were roiled by rising interest rates and a broad move out of risk, which contributed to the collapse of stablecoin Terra and the demise of crypto hedge fund Three Arrows Capital and exchanges Celsius and Voyager.
A Wells notice is typically one of the final steps before the SEC formally issues charges. It generally lays out the framework of the regulatory argument and offers the potentially accused an opportunity to rebut the SEC’s claims.
Coinbase described the investigation as “cursory,” and said the Wells notice provided relatively little information about potential violations.
“Although we don’t take this development lightly, we are very confident in the way we run our business – the same business we presented to the SEC in order for us to become a public company in 2021,” Coinbase Chief Legal Officer Paul Grewal said in a blog post.
The company said that until the resolution of any legal processes, the exchange’s offerings would continue to operate as usual.
Coinbase executives, including founder and CEO Brian Armstrong, have pushed back against perceived overreach by the SEC, which has moved aggressively against the crypto industry since the collapse of FTX. At the direction of SEC chair Gary Gensler, the regulator has issued enforcement actions against multiple heavyweights, including Gemini, Genesis, TRON executive Justin Sun, Do Kwon, and crypto exchange Kraken.
“We are prepared for this disappointing outcome and confident in the legality of our assets and services,” Grewal said in a statement. “If needed, we welcome a legal process to provide the clarity we have been advocating for and to demonstrate that the SEC simply has not been fair or reasonable when it comes to its engagement on digital assets.”
The SEC sent a Wells notice to stablecoin issuer Paxos in February. “We will engage with the SEC staff on this issue and are prepared to vigorously litigate if necessary,” a Paxos spokesperson told CNBC at the time.
Grewal said Coinbase is looking for more regulatory clarity.
“Tell us the rules and we will follow them,” he said. “Give us an actual path to register, and we will register the parts of our business that need registering.”
WATCH: Important to have regulatory clarity in U.S. crypto markets, says blockchain data firm
Stellantis is recalling over 375,000 Jeep Wrangler and Grand Cherokee 4xe plug-in hybrids, telling owners to avoid charging and park away from any buildings due to a potential fire risk.
Stellantis recalls Jeep Wrangler, Grand Cherokee PHEVs
After an internal investigation found 19 reports of fires, Stellantis said it was recalling about 320,065 Jeep plug-in hybrid SUVs in the US.
The recall affects certain model-year 2020-2025 Jeep Wrangler 4xe and 2022-2026 Jeep Grand Cherokee 4xe models.
Stellantis is recalling another 20,753 Jeep PHEVs in Canada, 2,653 in Mexico, and 32,238 in markets outside of North America.
Until the remedy is available, the company is urging owners to refrain from charging and to park away from buildings or other vehicles. The risk of a fire is less when the battery is drained, the company said.
The batteries were produced by Samsung SDI, the same defect that led to the recall of 154,000 Jeep plug-in hybrids in 2024. Vehicles included in that recall will still need the new remedy.
According to Stellantis, nine of the reported fires were from Jeep Wranglers and Grand Cherokees included in the 2024 recall.
Stellantis said a remedy “is imminent,” and affected drivers will be notified when they can schedule a service appointment.
Until then, owners can call customer care at 1-800-853-1403 with questions or concerns. You can also visit recalls.mopar.com for more information.
The recall comes after Stellantis issued one for nearly 25,000 Jeep Wrangler PHEVs less than two weeks ago due to a software glitch that left drivers stranded with bricked vehicles. Some had to be towed to dealers.
FTC: We use income earning auto affiliate links. More.
Zero Motorcycles, long known for its powerful electric motorcycles, is diving deeper into the world of urban mobility with the launch of the all-new LS1 electric scooter. Unveiled today at EICMA 2025 in Milan, the LS1 is designed to expand Zero’s reach beyond motorcycles and into the increasingly important city commuter segment.
The LS1 marks a key milestone in Zero’s “All-Access” initiative, aimed at making electric two-wheelers available to a broader range of riders. Compact, lightweight, and built for life in dense city environments, the LS1 brings Zero’s signature electric performance into a much more approachable and user-friendly package.
Powered by a mid-mounted motor and fueled by two swappable floorboard-mounted batteries, the LS1 offers up to 115 km (71 miles) of range in standard configuration. Riders looking to go further can add an optional third battery, stored under the seat, to extend range to 170 km (106 miles).
With a top speed of 100 km/h (62 mph), ABS, traction control, and a low seat height, the LS1 seems to offer the kind of versatility and rider confidence needed for navigating tight European streets.
For charging, the removable batteries can be topped up indoors using the included 800W charger (0–95% in 4.5 hours or 20–80% in 3 hours), or more quickly with an optional 1,500W fast charger that cuts those times nearly in half. That ease of off-board charging, combined with under-seat storage big enough for a helmet or groceries, seeks to make the LS1 a practical daily driver for urban riders and apartment dwellers.
Built as part of Zero’s expanding partnership with Zongshen, which also saw Zero roll out two trail-oriented e-motos, the LS1 seems to offer a nice balance between Zero’s design and more affordable Chinese production. And with a projected price of roughly €5,200 depending on the country/market, it seems reasonably priced to sell.
“The LS1 is designed for the people we see every day in cities like Paris, Milan, or Barcelona,” said Zero CEO Pierre-Martin Bos. “It’s simple, stylish, and makes electric riding accessible to a whole new group of riders.”
Bos recently replaced Sam Paschal as Zero’s new CEO, part of significant shifts lately at Zero that saw the company move its base of operations out of the US and reduce its workforce. A representative of Zero at the EICMA booth also explained that Zero’s former CTO Abe Askenazi is also no longer with the company.
Electrek’s Take
This is an interesting move by Zero, and probably a smart one. Flagship electric motorcycles may feature impressive performance, but they aren’t bringing in big profits right now. Smaller, modest e-motos that fit into more lifestyles are where the volume is at right now.
The LS1 brings the brand’s premium engineering and EV know-how to a format that more riders actually want, and can use every day. It’s lightweight, nimble, and doesn’t try to be a motorcycle in disguise. For city riders who’ve wanted a legit, high-quality electric scooter from a trusted brand, this could be an answer.
FTC: We use income earning auto affiliate links. More.
After teasing another new vehicle, Toyota said “a major unveiling” is set for next week. Is this Toyota’s electric truck?
What new vehicle is Toyota teasing now?
After stealing the spotlight at the Japan Mobility Show last week with the Corolla Concept, Land Cruiser FJ, and ultra-luxe Century brand, Toyota is at it again.
Toyota is teasing another new vehicle ahead of what it’s calling a “major unveiling” set for next week. “Get ready to embark on a new journey together,” the company said.
The image appears to be of the new Hilux, Toyota’s compact midsize Hilux pickup truck. The Hilux is the best-selling pickup outside of North America, going head-to-head with the Ford Ranger and other smaller trucks. It’s even Toyota’s most popular vehicle in some markets across Southeast Asia and Africa.
Currently in its eighth generation, Toyota’s pickup is due for an overhaul. Toyota teased the new vehicle, revealing slim LED headlights and a rugged front-end design.
A video from Toyota Thailand offers a better look at the pickup from the back and side. The rear features redesigned taillights similar to those on the front end. You can also see it’s a four-door pickup, or Double Cab.
Toyota said the major unveiling is set for November 10. We have yet to learn the prices or any powertrain specs (or even officially what vehicle it is), but it could arrive with a battery-electric (BEV) powertrain.
According to Drive, Toyota’s plans to release an electric Hilux pickup leaked during the Tokyo Motor Show. A slide shown to Malaysian media was leaked on Instagram, revealing two pickups, one clearly marked as a BEV. The other vehicles included the new bZ4X, Land Cruiser FJ, and Yaris Ativ.
The leaked image comes after Toyota Thailand president Noriaki Kamashita told reporters during last year’s Bangkok International Motor Show that the Hilux EV would launch by the end of 2025.
Although an electric variant is a possibility, the Hilux is expected to continue to be offered with its current mild-hybrid 2.8-liter turbo diesel engine.
We will learn more next week. Check back on November 10 for the full details.
FTC: We use income earning auto affiliate links. More.
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024