Bittime - In the midst of ongoing legal problems facing Coinbase, the crypto exchange is again faced with a lawsuit claiming that this company facilitates the sale of crypto assets in the category of securities without permission.
Sued by Users
The latest lawsuit was filed in the District Court for the Northern District of California in San Francisco. Six plaintiffs—all Coinbase users—described the exchange as "part of a dark crypto ecosystem that has operated just outside the law since it formed more than ten years ago."
The lawsuit states in part:
Its entire business model is built on lies and dreams: the lie is that "we don't sell securities," and the dream is that, knowing that it will eventually be caught in the lie, "it is better to apologize than permission."
The plaintiffs allege Coinbase intentionally and repeatedly violated the country's securities laws since its founding. They specifically highlighted that the exchange's User Agreement acknowledges the involvement of securities, allegedly claiming that the cryptocurrencies they list fall into the category of securities.
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Lawsuit Claims XLM, SOL, MATIC Are Securities
The lawsuit specifically mentions eight cryptocurrencies that the plaintiffs claim are securities. They are:
- Solana (SOL)
- Algorand (ALGO)
- Polygon (MATIC)
- Decentraland (MANA)
- Near Protocol (NEAR)
- Uniswap (UNI)
- Tezos (XTZ)
- Stellar Lumens (XLM)
They make the same argument for all cryptocurrencies: that investors expect the value of those cryptocurrencies to rise, and they expect that to happen "solely from the efforts of the creators, developers, and issuers of [one of the eight tokens]."
It is unclear why the plaintiffs chose these eight cryptocurrencies despite admitting that as of January this year, Coinbase had listed 235 crypto tokens. The lawsuit also attacks Coinbase Earn Accounts, which they claim are "Digital Asset Securities offered and sold on Coinbase's Digital Asset Platform during the Class Period."
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Accused of Violating Securities Law
The plaintiffs are from Florida and California and claim that the exchanges violated state securities laws in both states. Coinbase allegedly operated as an unregistered broker-dealer and "committed misleading acts and practices under California law by grossly unfairly exploiting the Claimants' lack of knowledge, ability, experience, or capacity."
This isn't the first time Coinbase has been accused of securities violations, as CNF reported. In its most recent case, the exchange defended its business model, and last month, a judge ruled in its favor.
However, in that case, the exchange prevailed because of its use agreement; The judge ruled that the class-action lawsuit failed to meet the criteria because many plaintiffs have different user agreements because Coinbase has updated the language used from time to time.
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How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is IDR 10,000. After that, then you can make a crypto asset purchase in the application.
Learn the Complete Guide on How to Buy Crypto on Bittime.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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