Customers will Bring A Renewed Lawsuit Against Coinbase

According to the lawsuit, the Solana, Polygon, Near, Decentraland, Algorand, Uniswap, Tezos, and Stellar Lumens tokens are allegedly securities.

Coinbase Faces New Lawsuit:

A class-action lawsuit launched by customers on Friday presents Coinbase with a fresh legal challenge. Since Coinbase started functioning, two of the exchange’s subsidiaries, Coinbase Global and Coinbase Asset Management, have been accused in the lawsuit of continuously breaching securities regulations.

The complaint highlights a few inconsistencies in the Coinbase user agreement. It claims that although Coinbase classified some cryptocurrency assets as securities, it never registered them for sale.

Furthermore, according to the lawsuit, Coinbase acknowledges serving as a “securities broker” and “securities intermediary.”

Additionally, it labels several digital assets listed on Coinbase as “digital asset securities.” Algorand (ALGO), Uniswap (UNI), Polygon (MATIC), Decentraland (MANA), Near Protocol (NEAR), and Solana (SOL) are a few of them.

Suit Claims Coinbase Deceived Customers:

Classifying digital assets as securities would profoundly influence how the Coinbase Digital Asset Platforms operate, as the complaint claims that Coinbase realized early on. “And for this reason, as required by state law, chose, or was willfully blind, to not register the securities, persons, or broker-dealers.”

It is claimed that the exchange’s omission of important information facilitated dishonest marketing strategies. The complaint asserts these strategies were intended to coerce clients into purchasing digital asset securities on Coinbase.

According to a Coinbase representative who talked with Crypto News, “the claims in this litigation are legally baseless.”

They said, “We look forward to addressing them appropriately and have full faith in the judicial process.”

The SEC has previously filed a separate action against Coinbase, alleging that the exchange violated securities laws. Through its staking program, Coinbase is expressly accused by the SEC of issuing and selling unregistered securities. Remarkably, the SEC’s lawsuit did not specifically name any Coinbase executives.

According to Coinbase, secondary sales of cryptocurrency assets are not considered securities. The exchange appealed against a judge’s recent ruling that the SEC litigation should proceed.