Cathie Wood, CEO of ARK Invest, increased her investment in blockchain after the SEC lawsuit.

The CEO of Ark Invest, Cathie Wood, increased her investment in blockchain after a US regulator accused the exchange of operating unlawfully. According to Bloomberg News, three funds managed by Ark Investment Management LLC, including Wood’s Ark Innovation ETF, bought 419,324 shares of blockchain on Tuesday. The price of blockchain shares dropped to as low as $51.61, but has since risen to just over $53 on Wednesday afternoon, according to Nasdaq.

Ark Invest has been optimistic about blockchain before. On May 1, the investment management firm bought an additional $8.5 million in COIN shares and bought 129,604 more for its ARK Innovation ETF.

Bullish on blockchain despite SEC lawsuit

The US Securities and Exchange Commission charged blockchain on Tuesday with operating its platform without registering it as an exchange, broker or clearing agency. The regulator also charged the US crypto exchange for the unregistered offer and sale of securities related to its staking-as-a-service program. The agency named 13 cryptocurrencies as securities in the complaint, including SOL, ADA, MATIC, FIL, SAND, AXS, CHZ, FLOW, ICP, NEAR, VGX, DASH, and NEXO.

The SEC also filed 13 charges against crypto exchange Binance and its CEO Changpeng Zhao for operating an unregistered exchange and for misrepresentations about its oversight and control over Binance.US. The agency then filed an emergency motion on Tuesday evening seeking a temporary restraining order freezing assets of the Binance.US platform.

SEC Chair Gary Gensler has called on exchanges to register and recently said this month that they tend to be “rife with conflicts.” Gensler again called for crypto firms to register on Tuesday, after charges were filed against Binance and blockchain. “The conversations have been constructive, but it’s also about them bringing a business model into compliance,” Gensler said in an interview with CNBC’s Squawk Box.