The price rally comes after rival exchange Binance pleaded guilty and traders apparently priced Coinbase’s custody arrangements for a series of spot crypto ETFs.
Shares of cryptocurrency exchange Coinbase (COIN) hit an 18-month high after rival exchange Binance and its former CEO Changpeng Zhao pleaded guilty to money laundering and violations of US sanctions.
On November 27, Coinbase closed at $119.77, the highest level since May 5, 2022, when it closed at $114.25, according to data from TradingView. There was little movement in after-hours trading.
The figure sends Coinbase shares up about 256.5% so far this year, although they are still 65% below their Nov. 12, 2021, all-time high of nearly $343.
The rise in Coinbase stock comes just a week after Binance and its founder Changpeng “CZ” Zhao pleaded guilty to money laundering, violating US sanctions and running an unlicensed money transmission business. .
Zhao and Binance reached a settlement with the US for $4.3 billion, which included Zhao resigning as CEO and Binance agreeing to have the Department of Justice and Treasury monitor compliance for up to five years.
Related: Binance Allegations Prove ‘Following the Rules’ Was the Right Decision: Coinbase CEO
Last year, Coinbase also saw significant windfall gains from yet-to-be-approved US Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).
Analysis by Bloomberg ETF analyst James Seyffart shows that Coinbase is custodian of 13 of the 19 spot crypto ETFs currently pending before the Securities and Exchange Commission.