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BREAKING: Coinbase Sued Over "Illegal" XRP Sales

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Wed, 12/30/2020 - 18:27
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Alex Dovbnya
Cryptocurrency exchange Coinbase is facing a lawsuit for obtaining commissions from illegal XRP sales
BREAKING: Coinbase Sued Over "Illegal" XRP Sales
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San Francisco-based Coinbase has been hit with a class action lawsuit over receiving commissions from illicit XRP sales.

The plaintiff, Thomas Sandoval, alleges that the number one U.S. cryptocurrency exchange knew that XRP was a security under federal securities laws but chose to continue to offer the token to its customers and charge commissions from trades. 

In his complaint, Sandoval further claims that Coinbase gained "an unwarranted competitive advantage" over other digital assets that only sold commodities.                            

The timing of the lawsuit is notable since the $8 billion exchange is on the verge of its landmark initial public offering that is slated for 2021.       

Related
BREAKING: Coinbase Files with SEC to Go Public

Earlier this week, Coinbase announced that it would suspend XRP trading in January after the U.S. Securities and Exchange Commission (SEC) took Ripple to court on Dec. 22. 

The blockchain company owns nearly half of the token's total supply.                 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.