The great crypto reckoning spearheaded by the SEC this week caused a lot of collateral damage.
As the regulatory authority announced back-to-back lawsuits, first against Binance and then against Coinbase, asset prices pegged to the industry tumbled. Few felt the brunt of the crackdown quite like Coinbase stock itself.
After closing 9% lower Monday after the Binance news, Coinbase shares slipped an additional 21% at intraday lows on Tuesday when its own suit was announced. All told, the stock had plummeted 28% from the prior week’s close at its low on Tuesday.
According to a new report from Matt Turner and David Marino at Bloomberg, that played right into the hands of an investor who executed what would turn out to be a highly profitable trade mere minutes before the SEC announced original Binance suit.
The trade breaks down like this, according to data compiled by Bloomberg:
The potential windfall marks the second suspiciously timed trade in the past couple of weeks. A separate recent Bloomberg analysis found that a shrewd investor made a large options bet that the stock of Equitrans Midstream Corporation would spike just days before a surprise beneficial provision was included in the debt-ceiling deal. Sure enough, the stock did spike, and it looks like the trader made roughly $7.5 million for their efforts.
The post A perfectly timed trade 24 minutes before the SEC’s big crypto crackdown likely made an investor millions appeared first on Business Insider.
