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Breaking: New Class Action Lawsuit Filed Against Coinbase, Brian Armstrong

Plaintiffs bring class action lawsuit against Coinbase Global and CEO Brian Armstrong claiming SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ, and XLM are securities.
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Breaking: New Class Action Lawsuit Filed Against Coinbase, Brian Armstrong

Highlights

  • Coinbase users files class action lawsuit alleging the company misled them and class into buying securities.
  • Lawsuit argues SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ, and XLM are securities.
  • They also claimed that the Coinbase Earn accounts violated securities laws, while seeking a jury trial.

Crypto exchange firm Coinbase faces another class action lawsuit alleging the company misled investors into buying securities. The complaint is brought by individual complainants claiming Coinbase has violated securities laws. In addition, the lawsuit argues Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar Lumens (XLM) are securities.

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Class Action Filed Against Coinbase and Brian Armstrong

Plaintiffs Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi, and Brett Maggard have brought a class action against Coinbase Global and CEO Brian Armstrong, as per a court filing.

The complainants accuse Coinbase of intentionally and repeatedly violating California and Florida securities laws. They claim Coinbase admitted it is a “Securities Broker” in its user agreement, making digital asset securities sold by the exchange as investment contracts or other securities. The plaintiff also took aim at Coinbase prime brokerage as a securities broker/dealer.

They allege digital assets listed on Coinbase are securities and cite Algorand, Decentraland, Polygon, Near Protocol, Uniswap, Solana, Stellar Lumens, and Tezos as securities. In addition, they assert Coinbase Earn accounts violated securities laws by advertising and promoting for higher yields.

Plaintiffs are seeking full recession, statutory damages under state law, and injunctive relief in a demand for jury trial. The lawsuit is similar to other class actions and the SEC lawsuit.

Also Read: Shiba Inu Exec Fumes At Elon Musk Over X’s Security Concerns

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Coinbase Seeks Clarity on Investment Contract Definition

Coinbase escalated its legal dispute with the U.S. SEC by filing an interlocutory appeal on the “investment contract” definition.

Paul Grewal, CLO of Coinbase, told CoinGape that the exchange has a higher chance of victory as the SEC’s interpretation of investment contracts doesn’t align with Second Circuit and Supreme Court cases. The moves came after Coinbase gained major clarity in the US Court of Appeals for the Second Circuit that secondary sales of crypto are not securities as there are no investment contracts.

Coinbase’s interlocutory appeal is also critical for Ripple Vs SEC lawsuit. The SEC could appeal Judge Torres’ ruling that programmatic sales of XRP are not securities.

Also Read: Elon Musk’s Tesla Adds Dogecoin As Payment Method, DOGE Price Rally 20%

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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