Coinbase pauses withdrawals of Ethereum staking rewards for up to 3 days
Crypto exchange Coinbase has paused the withdrawals of Ethereum staking rewards for up to three days. According to multiple posts on Twitter, Coinbase has temporarily “halted the distribution of Ethereum staking rewards as a result of a technical problem.”
In a series of tweets, Coinbase stated that due to Ethereum his transition, customers’ ETH2 (staked ETH) balance will now appear on the ETH asset page for a simpler experience.”
“Starting May 10, 2023, here’s what to expect: ETH2 will now be called ‘staked ETH’. You can find your staked ETH as an ‘earning’ balance under your primary ETH asset page. It might take a few days until you see the change in your account as we roll this out progressively,” Coinbase said from its official Twitter Support account.
5/5 Coinbase is committed to continuing to make it easy and secure to earn rewards from ETH staking. Learn more on our help page. https://t.co/Z5Qb6SfGLA
— Coinbase Support (@CoinbaseSupport) May 10, 2023
The news comes just a few hours after a Berenberg research report that the Securities and Exchange Commission (SEC) will soon bring enforcement action against the company.
According to Berenberg, the crypto exchange would face significant challenges in successfully transitioning away from the United States, as about 86% of the net revenue that Coinbase generated in the 12 months ended March 31 came from its U.S. operations, CoinDesk wrote.
Meanwhile, earlier this month, Wall Street giant Citi downgraded its rating on Coinbase from “buy” to “neutral” and significantly reduced its price target for the crypto exchange from $80 to $65. Citi’s decision was primarily influenced by regulatory uncertainty in the industry.
The exchange has been in a legal tussle with the U.S. Securities and Exchange Commission (SEC) since last year. But after months of silence from the federal regulator, Coinbase decided to take legal action against the agency.
In late April, Coinbase filed a lawsuit against the SEC and asked a federal judge to force the SEC to share its answer on the company’s July 2022 petition on “whether existing securities rule-making processes could be extended to the crypto industry,” CNBC reported.
Cooinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. The San Francisco, California-based Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like Bitcoin, Ethereum, and Litecoin.