Mon, August 05, 2024 at 12:33

• 

  Joy

  • Hey Annie!

  • Did you hear about the recent controversy with Coinbase?😮

  • 
• Annie

  • No, I haven't.

  • What's going on?🤔

  
• 

  Joy

  • So, Coinbase's chief legal officer, Paul Grewal, is claiming that accusations of the exchange breaking campaign finance laws are false.

  • He called it misinformation.

• Annie

  • Misinformation?

  • What exactly are they being accused of?😯

  
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• 

  Joy

  • Well, a crypto researcher named Molly White claimed that Coinbase violated campaign finance laws by donating $25 million to the Fairshake super PAC in May 2024.

  • She says they were involved in contract negotiations with a federal agency, which would make such contributions illegal.

• Annie

  • Wow, $25 million is a lot!😲 Have they made other contributions before?

  
• 

  Joy

  • Yeah, they have!

  • Coinbase contributed $5 million in November 2023 and $15.5 million in December 2023 to the same PAC.

  • But this last $25 million contribution is what's causing the stir.

• Annie

  • I see.

  • So, why does Molly White think this is illegal?🤨

  
• 

  Joy

  • She believes that because Coinbase was actively involved in contract negotiations with a federal government agency, they were likely prohibited from making such contributions.

  • She even called it the largest known illegal campaign contribution by a federal contractor!

• Annie

  • That's a serious accusation.

  • How did Coinbase respond?😬

  
• 

  Joy

  • Grewal responded on X, saying that Coinbase is not a federal contractor under the plain language of the law.

  • He explained that the funds they receive are from the Department of Justice selling forfeited property, which are not appropriated funds.

• Annie

  • So, according to him, Coinbase didn't break any laws?🤔

  
• 

  Joy

  • Exactly.

  • He insists that because the funds are not appropriated, Coinbase does not qualify as a federal contractor and thus hasn't violated any campaign finance laws.

• Annie

  • Interesting.

  • Has the Fairshake super PAC received a lot of donations this year?💰

  
• 

  Joy

  • Oh, definitely!

  • The Fairshake super PAC has attracted over $202 million in donations this year alone.

  • Many big crypto firms like Circle and Ripple Labs have contributed.

• Annie

  • Wow, that's a huge amount!

  • So, what do you think?

  • Is this news good or bad for the market?📉📈

  
• 

  Joy

  • Honestly, it feels like bad news.😔 The controversy and accusations could shake investor confidence in Coinbase and other crypto firms.

  • 

  • Plus, any legal battles could have negative repercussions on the market.

• Annie

  • I see.

  • Thanks for breaking it down, Joy.

  • This helps a lot with my investment decisions.🙏

  
• 

  Joy

  • No problem, Annie!

  • Always here to help.😊

  • To sum up, this article is considered a 😱Bearish for investors!!