New Class Lawsuit Filed Against Coinbase and Brian Armstrong
Crypto exchange company Coinbase is facing another class-action lawsuit alleging the company misled investors about purchasing securities. The complaint was filed by individual complainants who alleged that Coinbase violated securities laws. Additionally, the lawsuit claims that solana (SOL), Polygon (MATIC), near Protocol (NEAR), decentraland (MANA), algorand (ALGO), Uniswap (UNI), tezos (XTZ) and Stellar Lumens (XLM) are securities . .
Class Lawsuit Filed Against Coinbase and Brian Armstrong
Plaintiffs Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi and Brett Maggard filed a class-action lawsuit against Coinbase Global and CEO Brian Armstrong, according to a court filing.
The complainants accuse Coinbase of willful and repeated violations of California and Florida securities laws. They claim that Coinbase acknowledges in its user agreement that it is a “Securities Broker” that makes digital asset securities sold by the exchange as investment contracts or other securities. Plaintiff also targeted Coinbase prime brokerage as a securities broker/dealer.
They claim that digital assets listed on Coinbase are securities and cite Algorand, Decentraland, Polygon, Near Protocol, uniswap, Solana, stellar Lumens, and Tezos as securities. They also claim that Coinbase Earn accounts violate securities laws by advertising and promoting to generate higher returns.
The plaintiffs are seeking complete stay on the jury trial claim, statutory damages under state law, and injunctive relief. The case is similar to other class actions and the SEC lawsuit.
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Coinbase Seeks Clarity on Investment Agreement Definition
Coinbase has escalated its legal dispute with the US SEC by filing an interim objection over the definition of “investment contract”.
Coinbase CLO Paul Grewal told parofix that the exchange has a better chance of winning because the SEC’s interpretation of investment contracts is not consistent with Second Circuit and Supreme Court cases. The moves come after Coinbase received a major ruling from the U.S. Court of Appeals for the Second Circuit that secondary sales of cryptocurrency are not securities because they are not investment contracts.
Coinbase’s interim objection is also critical to the ripple Vs SEC case. The SEC may appeal Judge Torres’ decision that programmatic sales of XRP are not securities.
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Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
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