Ark Investment Management LLC, led by Cathie Wood, has capitalised on Coinbase Global Inc (NASDAQ:COIN)'s recent stock slump amid US Securities and Exchange Commission (SEC) allegations of unlawful operation.
The company bolstered its position as Coinbase's fourth-largest holder by acquiring an extra 419,324 shares.
The SEC has opened up legal battles with exchanges that collectively account for half of the world's digital asset trading.
Coinbase found itself in the crosshairs as the SEC accused it of violating US securities law, alleging it failed to register appropriately.
Adding to the regulatory heat, the SEC filed a complaint against Binance and CEO Changpeng Zhao just a day prior.
This case alleges multiple civil charges, including the improper blending of customer funds with those of Zhao's trading firm.