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New lawsuit against Coinbase suggests Solana (SOL), NEAR (NEAR), Stellar (XLM) and other coins are securities
Alex Dovbnja
Coinbase is facing a new class action lawsuit in California
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The US-based cryptocurrency exchange Coinbase is face a new class action lawsuit in the Northern District of California.
The lawsuit alleges 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 major US exchange has “knowingly” and “intentionally” violated state security laws since it began doing business as an unregistered broker-dealer.
“Coinbase solicited every purchase and sale 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 solicited customers to invest in the digital securities asset it offered on its brokerage platform,” the lawsuit states.
The company has not registered either its business or the securities sold, which is why the plaintiffs are seeking full rescission (the annulment of the contract), injunctive relief and statutory damages.
The U.S. Securities and Exchange Commission took Coinbase to court last year, alleging that the exchange had engaged in unregistered sales of securities. As reported by U.Today, the SEC presumed that Cardano (ADA) and other major cryptocurrencies were unregistered securities, a major blow to the cryptocurrency industry.
In March, the SEC managed to score a major victory against the cryptocurrency giant, with the court rejecting its request to dismiss the lawsuit.
About the author
Alex Dovbnja
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience covering everything related to the burgeoning industry, from price analysis to Blockchain disruption. Alex has authored more than 1,000 stories for U.Today, CryptoComes, and other fintech media. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets; he can be contacted at alex.dovbnya@u.today.