Investors File Lawsuit, Claim Coinbase Sold Unregistered Securities

2024-5-6 06:51

A group of investors has filed a class-action lawsuit against Coinbase, the popular US-based cryptocurrency exchange. They allege that the company has been offering and selling unregistered securities and investments to its customers.

The lawsuit was filed in the Northern District of California. It names Coinbase Global Inc. and its CEO, Brian Armstrong, defendants.

The Plaintiffs Allege Some Available Tokens on Coinbase as Securities

The plaintiffs allege that Coinbase has operated as an unlicensed broker-dealer since its inception. They also claim it has been offering and selling a wide range of digital assets, considered securities under California law.

The lawsuit lists an extensive list of tokens that are considered digital securities. This includes Algorand (ALGO), Near Protocol (NEAR), Polygon (MATIC), Uniswap (UNI), Solana (SOL), and many others.

Read more: What Is the Howey Test and How Does It Impact Crypto?

Furthermore, the plaintiffs allege that Coinbase “knowingly and willfully” violated California securities laws by failing to register as a broker-dealer and register the securities it offered. Moreover, they claim that Coinbase actively promoted these digital assets through its website, social media, and traditional advertising. Even Super Bowl ads were used to encourage customers to invest in them.

“No use case other than investing was ever offered by Coinbase to the Plaintiffs or the Class (there is no other use case for them) and Coinbase to this day continues to disseminate similar investment bulletins and updates to the Plaintiffs and Class Members. Indeed, the Coinbase website posts a ‘Weekly Market Commentary,’ and as of April 15, 2024, Coinbase still advises that ‘Investors have several ways to gain exposure to the [investment in crypto],’” according to the complaint.

The lawsuit aims for full rescission of all digital asset transactions conducted on the Coinbase platform. Additionally, it calls for injunctive relief and statutory damages.

Notably, this lawsuit comes after the US Securities and Exchange Commission (SEC) took legal action against Coinbase last year. The commission alleges that Coinbase has engaged in selling unregistered securities. The situation escalated in March 2024 when the court rejected Coinbase’s attempt to dismiss the lawsuit, positioning the SEC favorably in this ongoing legal battle.

This new development could have serious repercussions for Coinbase and the crypto industry in general. Coinbase could face significant penalties and damages if found guilty of selling unregistered securities. Additionally, this case could set an important precedent for cryptocurrency regulation in the United States.

Read more: Best Coinbase Alternatives in 2024 for Trading Crypto

It is important to note that the allegations in this lawsuit are just accusations. The crypto exchange has yet to have the opportunity to defend itself in court. However, this lawsuit is a significant challenge for the company and could significantly impact its future.

The post Investors File Lawsuit, Claim Coinbase Sold Unregistered Securities appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Sharpe Platform Token (SHP) на Currencies.ru

$ 0.0004599 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0.0004599 - H: $0.0004599
Капитализация $8.007k Rank 99999
Доступно / Всего 17.41m SHP

sold securities investors coinbase unregistered claim lawsuit

sold securities → Результатов: 93


Bitwise makes surprise ETH and BTC Market Cap ETF application withdrawal

Bitwise Trust Fund has withdrawn its application for a Bitcoin and Ethereum Market Cap Weight Strategy exchange-traded fund (ETF) from the U.S. Securities and Exchange Commission (SEC). Per its withdrawal statement, Bitwise said its “Trust no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold or will be […] The post Bitwise makes surprise ETH and BTC Market Cap ETF application withdrawal appeared first on CryptoSlate.

2023-9-2 16:45


Фото:

Ripple’s Legal Woes Likely To Dampen XRP Growth Following Recent Court Ruling

On Feb 26, Judge Phyllis Hamilton of the Northern District of California ruled that the class-action lawsuit filed by investors claiming Ripple sold unregistered securities will move forward. The judge also noted that digital assets that do not fall under securities law will be subject to laws against unfair, deceptive, or abusive acts or practices […]

2020-3-14 15:06


Block.one illegally sold securities to build the EOS cloud computing service, SEC finds

The firm behind blockchain-powered cloud computing service EOS must pay $24 million for violating US securities law with its initial coin offering (ICO). “Block. one did not register its ICO as a securities offering pursuant to the federal securities laws, nor did it qualify for or seek an exemption from the registration requirements,” said the US Securities and Exchange Commission (SEC) via a press release.

2019-10-1 16:48