Coinbase, a Nasdaq-listed crypto exchange, is facing public backlash after an email sent to its clients seemingly depicting Pepe the Frog mascot as a 'hate symbol used by the alt-right wing'. According to the Anti-Defamation League (ADL), the Pepe the Frog character is an originally non-bigoted meme that has been co-opted by extreme right-wing groups in the last 20 years. It has even been used by conservative politicians like former US President Donald Trump. The emergent controversy had caused users to call for a boycott of the exchange and urged users to move their PEPE to rival exchange Gemini. As a result, Gemini reportedly saw an influx of 300 billion PEPE tokens.

CEO Brian Armstrong retweeted Coinbase’s Chief Legal Officer Paul Grewal saying it is important to address difference publicly to establish a better working relationship. The crypto exchange is concurrently facing legal issues in the US. Coinbase was handed a Wells Notice by the US Securities and Exchange Commission (SEC) and former Coinbase manager Ishan Wahi was convicted of crypto insider trading for which he has received a two year jail term. The exchange is additionally facing two class-action lawsuits, with its top officials being accused of taking advantage of inside information in order to benefit from its listings. Lastly, it has also been accused of privacy violations.

Amidst all this critical yet attention-grabbing moments, the price of the Pepe (PEPE) coin has since been spiraling downwards and SEC Chair Gary Gensler has urged Coinbase to enhance its security to increase the chances of competitiveness.



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