The U.S. crypto exchange giant, Coinbase (NASDAQ:COIN), has been hit with another class-action lawsuit, with the plaintiffs claiming the crypto exchange sold unlicensed crypto assets.
Coinbase Lists 79 Unlicensed Crypto
The lawsuit filed by Christopher Underwood, Louis Oberlander, and Henry Rodriguez claims that Coinbase in the Southern District Court of New York claims that Coinbase has listed on its platform 79 tokens that could violate state and federal laws.
According to the plaintiffs, Coinbase sold these unlicensed crypto assets without properly warning its users of the risk involved when acquiring these assets.
The lawsuit, which contains a 255-page document, argues separately for each token in question that it qualifies as a security under the Howey test.
Coinbase “Sold” Unlicensed Crypto
In addition to claiming that Coinbase listed unlicensed crypto, the suit claims that Coinbase is the “actual seller” of these assets.
According to the argument, when an exchange credits or debits parties involved rather than facilitate direct exchange between the buyer and seller, it becomes the seller of the asset.
As such, the plaintiffs have filed to claim reimbursements for trading losses to $5 million collectively.
On the Flipside
- Pointing to similar cases in the past, many have suggested that the case is unlikely to go to trial or get further than this initial filing.
Why You Should Care
Contrary to its earlier stance, Coinbase has increased the number of token listings on its trading platform, leading to cases such as this.
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