US-based cryptocurrency exchange Coinbase is facing a new class-action lawsuit in the Northern District of California.
The lawsuit states that Coinbase has offered and sold securities and investments to the plaintiffs and class. The extensive list of the tokens that constitute digital securities includes Algorand (ALGO), Near Protocol (NEAR), Polygon (MATIC), Uniswap (UNI), Solana (SOL), and other tokens.
The plaintiffs allege that the leading US exchange has "knowingly" and "intentionally" violated state security laws since it started doing business by operating as an unregistered broker-dealer.
"Coinbase solicited every purchase and sale of Digital Assets by means of general solicitations including those on its website and in social media advertising, traditional advertising, and even Super Bowl commercials. At all times, Coinbase was soliciting the customers to invest in the Digital Asset securities that it offered on its broker platform," the lawsuit says.
Dan BurginThe company failed to register itself or the securities it sells, which is why the plaintiffs are seeking full recission (the cancellation of a contract), injunctive relief as well as statutory damages.
The U.S. Securities and Exchange Commission took Coinbase to court last year, alleging that the exchange engaged in unregistered sales of securities. As reported by U.Today, the SEC alleged that Cardano (ADA) and other major cryptocurrencies were unregistered securities in a blow to the crypto industry.
In March, the SEC managed to score a major win against the cryptocurrency giant, with the court rejecting its bid to dismiss the lawsuit.
Vladislav Sopov
Dan Burgin
U.Today Editorial Team