ARK Invest buys blockchain shares amid SEC lawsuit.

On the same day that cryptocurrency exchange Blockchain received a lawsuit from the United States Securities and Exchange Commission (SEC), ARK Invest increased its holdings of blockchain stock.

On June 6, ARK Invest added approximately 419,324 shares of blockchain Global Inc., worth nearly $21.6 million at the time of closing that day, according to an investor notification from the firm.

This move by ARK Invest came as blockchain stock dropped more than 20% on June 6, following the SEC’s ongoing action and lawsuit announcement. At the time of writing, blockchain’s stock price was around $53.11.

ARK Invest’s addition of blockchain stocks to its portfolio follows a trend, as the firm had added 168,869 blockchain shares in May, worth around $8.5 million at the time. The firm also made investments in March and April, of 2.4 million shares worth about $117 million, and 304,300 shares worth $17.5 million, respectively.

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The SEC’s recent lawsuit against blockchain accuses the exchange of offering unregistered securities and of never registering as a broker, national securities exchange, or clearing agency.

In response, blockchain CEO Brian Armstrong tweeted that his team is “confident in our facts and the law,” and that he welcomes the opportunity “to finally get some clarity around crypto rules” in court.

blockchain’s chief legal officer, Paul Grewal, told the U.S. Congress on June 6 that the company has “embraced regulation” since its founding, and that in 2021 alone, it met with the SEC 30 times for regulatory guidance.

Also on June 6, blockchain was issued a Show Cause Order from a task force of state security regulators in several states, including Alabama, California, Illinois, and Vermont. The order alleged that the exchange’s offering of its staking rewards program violates securities law.

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