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New Coinbase lawsuit suggests Solana (SOL), NEAR (NEAR), Stellar (XLM) and other coins are securities
Alex Dovbnya
Coinbase is facing a new class action lawsuit in California
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US-based cryptocurrency exchange Coinbase is facing a new class action lawsuit in the Northern District of California.
The lawsuit claims that Coinbase offered and sold securities and investments to the plaintiffs and the class. The extensive list of tokens that constitute digital securities includes Algorand (ALGO), Near Protocol (NEAR), Polygon (MATIC), Uniswap (UNI), Solana (SOL), and other tokens.
The plaintiffs allege that the leading U.S. exchange has “knowingly” and “intentionally” violated state security laws since it began doing business by operating as an unregistered broker-dealer.
“Coinbase solicited all purchases and sales of Digital Assets through general solicitations, including those on its website and in social media advertising, traditional advertising, and even Super Bowl commercials. At all times, Coinbase was soliciting clients who invested in Ativo Digital. securities that it offered on its brokerage platform”, says the process.
The company has not registered itself or the securities it sells, which is why the plaintiffs seek full rescission (cancellation of contract), injunctive relief and compensation for legal damages.
The U.S. Securities and Exchange Commission took Coinbase to court last year, alleging that the exchange engaged in unregistered securities sales. As reported by U.Today, the SEC alleged that Cardano (ADA) and other major cryptocurrencies were unregistered securities, which represents a blow to the crypto industry.
In March, the SEC scored a major victory against the cryptocurrency giant, with the court rejecting its proposal to dismiss the case.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the booming industry – from price analysis to Blockchain disruption. Alex has authored over 1,000 stories for U.Today, CryptoComes, and other fintech media outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. He can be reached at alex.dovbnya@u.today.