The Securities and Exchange Commission (SEC) in the United States sued cryptocurrency trading platform Coinbase just a day after it took similar action against rival Binance, Reuters reported.

In a complaint filed in Manhattan federal court, the SEC alleges that the Coinbase platform operated as an unregistered broker for at least 4 years through its activities related to cryptocurrency transactions, thus circumventing the obligation to submit financial declarations aimed at protecting investors.

The US regulator also said that both Coinbase Prime, which routes orders to the Coinbase platform and other platforms, and Coinbase Wallet, which allows investors to access their liquidity outside the Coinbase platform, were operating as unregistered brokers.

“Coinbase’s alleged failures deprive investors of important protections, including rules that prevent fraud and manipulation, [de documente] appropriate safeguards against conflicts of interest and routine checks,” said SEC Chairman Gary Gensler.

Coinbase shares fell 15.9% in premarket trading after the SEC announcement. The company currently does not want to comment on the allegations.

The SEC filed the lawsuit against Coinbase just a day after suing Binance, the world’s largest cryptocurrency trading platform, and Changpeng Zhao, its founder, known by the alias CZ.

Charges have been brought against Binance and its founder “CZ” in the US.

This separate lawsuit, filed by US authorities in a court in Washington, contains 13 allegations against Binance, Zhao personally and Binance’s American subsidiary, which was supposed to operate as an independent operator.

The SEC alleges that Binance artificially inflated trading volumes, misappropriated customer funds, and misled investors about its market oversight and control mechanisms.

In an indictment that has rocked the crypto community, the SEC alleges that Binance and Zhao, perhaps the best-known crypto investor, secretly controlled clients’ assets, allowing them to use them “as they pleased.”

The SEC also alleged that Binance set up companies in the United States “as part of a complex scheme to evade US federal securities laws.”

“We allege that Zhao and Binance have engaged in an extensive web of deception, conflicts of interest, lack of transparency and willful evasion of the law,” Gary Gensler said in a press release.

Binance has denied the allegations and reminded that it is not a trading platform based in the US. Thus, “the SEC’s actions are limited in jurisdiction,” the company said in a blog post.

The price of Bitcoin immediately fell 6% to a 3-month low after the SEC’s announcement on Monday.