New class action lawsuit against Coinbase over providing crypto securities knowingly

A new lawsuit action came to light which alleged that Coinbase crypto exchange knowingly violated state Securities law by offering unregistered securities trading.

Coinbase is top top-ranked US-based crypto exchange. Since mid-2023, this exchange has been facing legal hurdles, as the United States Securities and Exchange Commission (SEC) sued this exchange over providing unregistered securities offerings & running an unregistered national securities exchange.

A new class action lawsuit was filed against the Coinbase crypto exchange in the US representing 5 plaintiffs from California and Florida. They alleged that the Coinbase crypto exchange violated state securities laws since the company’s inception.

The lawsuit alleged that Coinbase exchange already admitted in its user agreement that it was a securities asset broker, but still offered SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ, and XLM, which are unregistered securities.
Notably this lawsuit is not only against Coinbase but also against its CEO & Co-founder Brian Armstrong, who is also a top-level crypto leader in the crypto space.

Now it will be interesting to see how the US SEC will use this new evidence against Coinbase exchange in its battle.

It is worth it to note that on 26 April, popular US-based crypto lawyer John Deaton, who’s also running for election to challenge Senator Elizabeth Warren, filed a legal document in a New York court. That legal document supports a request to appeal a decision made during an ongoing legal process. It’s filed on behalf of 4,701 Coinbase customers.

The current trade price of Coinbase (Coin) stock is 2.5% down over the last trade closing time and it will be interesting to see the sell pressure on this stock asset in the morning of Monday of this new week.

Read also: BTC-e Operator Pleads Guilty to $9 Billion Money Laundering Conspiracy