Investors Accuse Coinbase of Selling Unregistered Securities
Investors Sue Coinbase, Accusing Sale of Unregistered Securities
A group of investors has filed a class-action lawsuit against Coinbase, claiming that the popular cryptocurrency exchange has been offering and selling unregistered securities. The lawsuit alleges that Coinbase has operated as an unlicensed broker-dealer and promoted digital assets, considered securities under California law.
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.
- Algorand (ALGO)
- Near Protocol (NEAR)
- Polygon (MATIC)
- Uniswap (UNI)
- Solana (SOL)
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 article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.