By Denny Jacob


Coinbase Global Inc. shares tumbled 16%, to $56.62, following a report that the company is facing a probe by the U.S. Securities and Exchange Commission.

The SEC is investigating into whether Coinbase improperly let Americans trade digital assets that should have been registered as securities, Bloomberg reported, citing three people familiar with the matter.

Paul Grewal, Coinbase's legal chief, said on Twitter late Monday that the company is confident that its diligence process keeps securities off its platform and that it looks forward to engaging with the SEC on the matter.

The report is the latest headwind for the company. A former Coinbase employee and two other men were charged with wire fraud July 21. The company in June said that it was slashing its workforce by about 18%, amid broader challenges throughout the cryptocurrency industry.


Write to Denny Jacob at denny.jacob@wsj.com


(END) Dow Jones Newswires

07-26-22 1208ET