A class-action complaint has been filed against Coinbase in the Northern District of California’s San Francisco division, alleging that the leading US crypto exchange has violated US securities laws. The complaint claims that Coinbase has been operating as part of an underground crypto ecosystem that operates outside of the law. It states that the company’s entire business model is based on deception, with Coinbase claiming that they do not sell securities when in fact they do. The complaint accuses Coinbase of knowingly and intentionally violating state securities laws since its inception.
The complaint also lists multiple “digital asset securities” that Coinbase allegedly offered without proper registration. These include Solana (SOL), NEAR Protocol (NEAR), Algorand (ALGO), Stellar (XLM), Tezos (XTZ), Polygon (MATIC), Uniswap (UNI), and Decentraland (MANA).
The US Securities and Exchange Commission (SEC) has also filed a lawsuit against Coinbase, accusing the exchange of violating securities laws. Coinbase has argued that trading digital assets should not be classified as an “investment contract” under the Howey Test, a legal assessment used to determine whether assets should be considered securities.
It is important to note that the opinions expressed in this article are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at the individual’s own risk, and any losses incurred are their responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor.
