A class action lawsuit has been filed against Nasdaq-listed cryptocurrency exchange, Coinbase, alleging that the platform allows customers to trade 79 cryptocurrencies that are unregistered securities, including XRP, dogecoin (DOGE) and shiba inu (SHIB).
Lawsuit Claims Coinbase Sold 79 Unregistered Crypto Securities to Clients
A class action lawsuit was filed last week against Coinbase Global Inc., Coinbase Inc. and CEO Brian Armstrong.
Lead plaintiffs and Coinbase users Christopher Underwood, Louis Oberlander, and Henry Rodriguez allege that from October 8, 2019 to present, Coinbase allowed customers to buy and sell 79 different cryptocurrencies without disclosing that it was in terms of titles. The plaintiffs added that these crypto securities are not registered with the United States Securities and Exchange Commission (SEC) or any state regulator, and Coinbase is not registered as a stock exchange. securities or broker.
The plaintiffs claim that “the sale of these tokens by Coinbase violates both federal and state law.” The course covers all persons or entities who have transacted in any of the 79 crypto tokens on Coinbase or the Coinbase Pro platform during the course period.
Without registering these crypto assets with the SEC and state regulators, the plaintiffs stated:
Buyers do not have access to the information that accompanies traditional securities issues. Instead, investors only receive – at most – the so-called white papers, which describe the token, but do not meet the requirements for a prospectus under federal and state securities laws. .
The 79 cryptocurrencies named in the lawsuit are 1INCH, AAVE, ACH, ADA, AGLD, ALGO, AMP, ANKR, ARPA, ATOM, AUCTION, AXS, BAL, BAND, BAT, BNT, BOND, BTRST, CGLD, CLV, COMP, CRO, CRV, CTSI, CVC, DNT, DOGE, POINT, ENJ, EOS, FARM, FET, FIL, FORTH, GNT, GRT, GTC, ICP, IOTX, KEEP, KNC, LINK, LOOM, LRC, MANA, MATIC, MKR, MLN, NKN, RMN, NU, OGN, OMG, ORN, OXT, PLA, POLY, QNT, RAPID, RARI, REN, REP, RLC, SHIB, SKL, SNX, SOL, STORJ, SUSHI, TRB, TRIBE, UMA, UNI, XLM, XRP, XTZ, XYO, YFI, ZRX.
The lawsuit repeatedly quotes SEC Chairman Gary Gensler. The head of the SEC has repeatedly stated that there is not enough investor protection in the crypto sector. He also pointed out that some platforms list 50-100 tokens, some of which are likely to be securities.
However, the SEC has not actively clarified which cryptocurrencies it considers securities. In December 2000, the Commission sued Ripple Labs and two executives for the sale of XRP which it claimed were unregistered securities. Ripple argues that XRP is not a security; the trial is still ongoing.
According to the Coinbase class action document:
This case is a class action where the total claims of all proposed class members exceed $5,000,000, excluding interest and costs.
Plaintiffs seek to “recover damages, consideration paid for tokens and trading fees, and interest thereon, and attorneys’ fees and expenses, to the fullest extent permitted by law.”
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Coinbase Sued For Allegedly Selling 79 Unregistered Crypto Securities – Including XRP, Dogecoin, Shiba Inu
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