Coinbase and CEO Brian Armstrong Face New Class Action Lawsuit: Impact on Crypto Market and COIN Symbol
- Coinbase Global and CEO Brian Armstrong face a class action lawsuit alleging the sale of securities.
- The lawsuit claims that SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ, and XLM are securities.
- The plaintiffs also argue that Coinbase Earn accounts violated securities laws.
A class action lawsuit has been filed against Coinbase Global and CEO Brian Armstrong, alleging the sale of securities and violation of securities laws.
Class Action Lawsuit Against Coinbase
Coinbase, a leading crypto exchange firm, is facing a class action lawsuit. The plaintiffs allege that the company misled investors into buying securities, violating California and Florida securities laws. The lawsuit argues that digital assets listed on Coinbase, including Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar Lumens (XLM), are securities.
Allegations Against Coinbase
The plaintiffs, Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi, and Brett Maggard, claim that Coinbase admitted to being a “Securities Broker” in its user agreement. They argue that this makes the digital asset securities sold by the exchange investment contracts or other securities. The lawsuit also alleges that Coinbase Earn accounts violated securities laws by advertising and promoting higher yields. The plaintiffs are seeking full recession, statutory damages under state law, and injunctive relief in a demand for a jury trial.
