Six Coinbase customers claim the exchange violates securities laws in new lawsuit

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Six Coinbase customers claim the exchange violates securities laws in new lawsuit Monica Ghosh · 1 day ago · 2 minute read

The Coinbase users who filed the lawsuit are seeking rescission, statutory damages under state law, and injunctive relief.

2 minute read

Has been updated: May. May 2024 4:21pm (UTC)

Cover art/illustration via CryptoSlate. Images contain combined content, which may include AI-generated content.

6 Coinbase customers It has been submitted New class action lawsuit filed against cryptocurrency exchange Coinbase Global and two of its subsidiaries, Coinbase, Inc. and Coinbase Asset Management, LLC. — and its CEO, brian armstrongMay 5th.

The lawsuit alleges that the digital assets listed on Coinbase are securities. This includes Solana (sol), polygon (Matic), near protocol (near), Decentraland (mana), Algorand (something), Uniswap (Uni), Tezos (XTZ),Stella (XLM). Plaintiffs claim these tokens constitute “investment contracts” subject to state securities laws.

According to the complaint, Coinbase itself acknowledges in its user agreement that it is a “stock broker.” Accordingly, the defendants “knowingly and knowingly repeatedly violated state securities laws” and deceived users, the lawsuit filed in the U.S. District Court for the Northern District of California, San Francisco Division alleges.

The complaint further states:

“Their (Coinbase) entire business model is built on lies and dreams. The lies are ‘we don’t sell securities’ and the dreams are “It’s better that way,” knowing that the lie will be discovered.” Ask for forgiveness rather than permission. ”

The lawsuit was brought by plaintiffs Gerardo Aceves, Thomas Huang, Edwin Martinez, Tiffany Smoot, Edward Cordy, and Brett Maggard from California and Florida. The plaintiffs are seeking a complete rescission, meaning the rescission of the purchase agreement, as well as statutory damages and injunctive relief under state law.

Coinbase is already facing a lawsuit by the U.S. Securities and Exchange Commission (SEC) alleging that the exchange violated securities laws. Coinbase maintains that secondary sales of crypto assets are not securities. The exchange filed an interlocutory appeal after a judge allowed the SEC lawsuit to proceed.

Late last month, a lawyer supporting XRP John Deaton We filed an amicus brief in support of an interlocutory appeal motion on behalf of 4,701 Coinbase customers. Mr. Deaton is currently campaigning against Sen. Elizabeth Warren.

Earlier this week, Coinbase reported that: undulation First quarter sales exceeded expectations, reaching $1.64 billion. The exchange’s trading revenue nearly tripled to $1.07 billion, and consumer trading revenue alone soared to $935 million, doubling from the previous year.

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“Six Coinbase customers have filed a new class action lawsuit against cryptocurrency exchange Coinbase Global, two of its subsidiaries, Coinbase, Inc. and Coinbase Asset Management, LLC., and its CEO Brian Armstrong. Ta….”
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