Discover your dream Career
For Recruiters

SEC's Coinbase case targets unit employing many bankers

The SEC is on a roll. Yesterday, it published a 136 page complaint against Binance and its founder, Changpeng Zhao. Today, it's published a 101 page complaint against Coinbase. The Coinbase complaint names no names, but it does repeatedly mention a unit of the crypto exchange that's been particularly accommodating of former bankers: prime broking. 

Coinbase has been busy marketing prime broking as a “prime broker for digital assets,” says the SEC. Among other things, it claims to be, a "full-service prime brokerage platform with everything that institutions need to execute trades and custody assets at scale.”

As such, the SEC says Coinbase has been running an unregistered brokerage service. It's not just Coinbase prime, but prime is a big part of it. Coinbase has yet to publish a response to the SEC's complaint on its blog, but in the meantime its share price is down 15%. On that basis alone, the new complaint doesn't seem the best news for everyone in its prime business, many of whom once worked in banking.

Coinbase's prime people encompass: Brett Tejpaul, a former JPMorgan and Barclays head of fixed income and structured product sales respectively, who heads Coinbase's whole institutional business, prime included; Matt Boyd, who runs prime finance and was once global head of securities finance at BlackRock; Ayan Dirie, head of APAC and EMEA institutional account management, who joined from Goldman Sachs, and more junior people like Drew Luehe, a former member of Morgan Stanley's prime broking team.  None of these people are mentioned or directly implicated in the SEC's complaint, but it's not a good look for their business area. 

Coinbase's institutional business as a whole employs as many as 300 people, many of whom had a banking background. Some have already been burned in previous rounds of layoffs. 

Click here to create a profile on eFinancialCareers. Make yourself visible to recruiters hiring for top jobs in technology and finance. 

Have a confidential story, tip, or comment you’d like to share? Contact: sbutcher@efinancialcareers.com in the first instance. Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

Photo by Ricardo Arce on Unsplash

 

author-card-avatar
AUTHORSarah Butcher Global Editor

Sign up to our Newsletter!

Get advice to help you manage and drive your career.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Jobs
S.R Investment Partners
Hedge Fund Analyst / Business Development
S.R Investment Partners
London, United Kingdom
Cobalt Recruitment
Private Equity- Investment Analyst
Cobalt Recruitment
London, United Kingdom
Strike IT
Python Developer - Asset/Investment Management
Strike IT
London, United Kingdom
Lion Global Investors Ltd
Analyst – Fixed Income
Lion Global Investors Ltd
Singapore
CW Talent
Quantitative Researcher
CW Talent
New York, United States
S&P Global
Senior Development Manager
S&P Global
London, United Kingdom

Sign up to our Newsletter!

Get advice to help you manage and drive your career.