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Exchange operator Coinbase has chosen Nasdaq as the venue for its direct listing, according to two sources familiar with the San Francisco crypto unicorn’s plans.

The firm’s plan to tap the public markets in the coming weeks follows a secondary offering on Nasdaq Private Market. 

On January 25, Nasdaq Private Market launched a secondary market for Coinbase stock, a move that allowed shareholders with vested equity to sell shares. Nasdaq Private Market offers services for companies ahead of an IPO, including “controlled liquidity programs for pre-IPO companies looking to raise secondary capital for shareholders and investors.”

According to one source, shares on Nasdaq Private Market were matched at a price of $200. With 254 million shares outstanding, that’s an implied valuation of approximately $50 billion for the firm. 

That calculation also represents a major discount from where pre-IPO futures contracts are trading for Coinbase on FTX. Shares are trading at $277, implying a valuation just below $70 billion. 

Coinbase opting for Nasdaq over the New York Stock Exchange (NYSE) represents a big win for the firm. NYSE conducted the direct listings of several other unicorns, including Spotify, and in December, the SEC signed off on a plan by NYSE to allow companies to raise funds through a direct listing. NYSE also invested in Coinbase’s $75 million funding round in 2015.

Typically, direct listings are a strong option for a firm with an established brand name seeking liquidity for its stakeholders versus raising new capital. 

Coinbase and Nasdaq declined to comment on this report. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

A man from Ontario, California, has agreed to plead guilty to felony charges of money laundering and operating a virtual currency business without a FinCEN-approved license, according to a statement from the Department of Justice released last week. 

Hugo Sergio Mejia, 49, had allegedly been operating a business exchanging Bitcoin and cash for roughly two and a half years, between May 2018 and September 2020. During that time, Mejia exchanged $13 million worth of the virtual asset, sometimes to parties he allegedly knew were involved in the international drug trade. Mejia also purportedly set up three decoy companies — Worldwide Secure Communications LLC, World Secure Data, and The HODL Group LLC — to hide the extent of his activity. 

Though it’s unclear how much he netted from commissions, Mejia forfeited nearly $234,000 in cash, silver coins and bars, as well as roughly $96,000 in crypto during his case, led by IRS Criminal Investigation and Homeland Security Investigations. Expected to officially plead guilty in March, Mejia faces up to 25 years in federal prison. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Last week was a turbulent one for the popular brokerage app Robinhood. Amid that turmoil, Robinhood tapped its investors for a reported $1 billion in addition to drawing on existing lines of credit.

Now Robinhood has reportedly raised another $2.4 billion from its shareholders, per the Wall Street Journal, citing people familiar with the process. 

The fundraising efforts come as Robinhood and its leadership team find themselves in the crosshairs of angry users and watchful regulators. A number of influential members of Congress have called for public hearings into last week’s events — which saw the price of the stock of GameStop surge above $400 and apps such as Robinhood temporarily limit access to the stock — a move the firm said was aimed at preserving the integrity of the platform.

Accusations of market manipulation have dogged Robinhood since, despite efforts to navigate the fray via a public relations campaign that saw Robinhood CEO Vlad Tenev make media appearances.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.