- Coinbase, a leading cryptocurrency exchange in the U.S., is facing a class action lawsuit alleging its business model violates state securities laws.
- The lawsuit, filed by Scott+Scott, represents plaintiffs from California and Florida who claim Coinbase has been operating outside the law for over a decade.
- The outcome of Coinbase’s ongoing battle with the U.S. Securities and Exchange Commission (SEC) could potentially influence the fate of this lawsuit.
Coinbase, a leading U.S. cryptocurrency exchange, is embroiled in a class action lawsuit alleging its business model is fundamentally illegal. This article delves into the details of the lawsuit and its potential implications on the crypto industry.
Coinbase Faces Class Action Lawsuit
On April 3, a class action lawsuit was filed against Coinbase by Scott+Scott in the Northern District of California. The lawsuit represents plaintiffs from California and Florida who claim that Coinbase has consistently violated state securities laws for over ten years. According to the plaintiffs, Coinbase’s entire business model is based on the false premise that it does not sell securities. They argue that the company has been operating in a “shady crypto ecosystem outside the law.”
Previous Legal Challenges
This is not the first time Coinbase has faced legal challenges. A previous case against the company, which was initially dismissed, has been partially revived by the U.S. Second Circuit Court of Appeals. The core issue in both cases is whether the digital assets sold on Coinbase’s platform are, in fact, securities. Coinbase has dismissed these allegations as “legally baseless” and expressed confidence in the judicial process to resolve the matter.
Implications of the SEC Battle
Coinbase is also in a high-profile battle with the U.S. SEC over whether its listed tokens are securities. The company is currently appealing a judge’s recent decision that approved the case for trial. Legal experts anticipate that the outcome of the SEC’s court case will determine whether digital assets are classified as securities, potentially influencing the fate of the class action lawsuit.
Attorney John Jasnoch’s Role
Attorney John Jasnoch, known for his involvement in class-action litigation against various crypto entities, filed the new lawsuit. His previous cases have targeted projects like Safemoon and Ethereum Max, the latter of which resulted in a hefty fine for celebrity Kim Kardashian due to promotional activities.
Conclusion
The outcome of the class action lawsuit and the SEC battle could have significant implications for Coinbase and the broader crypto industry. If digital assets are classified as securities, it could fundamentally change the way cryptocurrency exchanges operate. As these legal battles unfold, all eyes will be on the courts’ decisions and their potential impact on the future of the crypto industry.
