US-based cryptocurrency exchange Coinbase is versus a new class action lawsuit in the Northern District of California.
US-based cryptocurrency exchange Coinbase is versus a new class action lawsuit in the Northern District of California.
The lawsuit claims that Coinbase has offered and sold securities and investments to the plaintiffs and the class. The extensive list of tokens that constitute digital securities includes Algordand (ALGO), Near Protocol (NEAR), Polygon (MATIC), Uniswap (UNI), Solana (SOL) and other tokens.
The plaintiffs allege that the leading American exchange has “knowingly” and “intentionally” violated state security laws since it began operating as an unregistered broker-dealer.
“Coinbase solicited every purchase and sale of Digital Assets through general solicitations, including those on its website and in social media advertising, traditional advertising, and even Super Bowl commercials. At all times, Coinbase requested customers to invest in Digital Assets . securities that it offered on its brokerage platform,” the lawsuit says.
The company did not register itself or the securities it sells, so the plaintiffs are seeking full rescission (the cancellation of a contract), injunctive relief and statutory damages.
The U.S. Securities and Exchange Commission took Coinbase to court last year, alleging that the exchange engaged in unregistered securities sales. As reported by Guru-Investingthe SEC alleged that Cardano (ADA) and other major cryptocurrencies were unregistered securities in a blow to the cryptocurrency industry.
In March, the SEC managed to score a major victory against the cryptocurrency giant, with the court rejecting its attempt to dismiss the lawsuit.
