Coinbase (COIN) Faces Accusations of Running an ‘Illegally Operative’ Cryptocurrency Empire
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- 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.”
