AG Wilson brings action against Coinbase for violating SC securities law

COLUMBIA, S.C. (WOLO)—Attorney General Alan Wilson has taken action against Coinbase Global, Inc. for allegedly selling unregistered securities to state investors.

The Office of the Attorney General says the company’s crypto-asset rewards program violates the South Carolina Securities Act.

The program is offered to the public and advertises a return of up to 6% on investments. Investors deposit crypto assets with Coinbase.

As of March 29, 43,000 of those rewards program accounts were held by South Carolinians. The total value of those assets is approximately $37.7 million.

The accounts are not insured by the Federal Deposit Insurance Corporation (FDIC) or Securities Investor Protection Corporation (SIPC).