Three users sue Coinbase for the sale of 79 crypto that “can be considered securities” – DiarioBitcoin

Three users sue Coinbase for the sale of 79 crypto that "can be considered securities" - DiarioBitcoin

Three users sue Coinbase for the sale of 79 crypto that "can be considered securities" - DiarioBitcoin By DailyBitcoin Editor

the exchange coinbase faces the lawsuit made by three users who ask for a refund of USD $5 million.


American cryptocurrency exchange Coinbase is facing a new legal battle, this time specifically with users who believe it is making sales of cryptocurrencies that can be considered securities.

Three Coinbase users filed a lawsuit in the Southern District Court of New York against the exchange for 79 crypto tokens that are listed on the platform and that, according to the plaintiffs, can be considered securities and, therefore, the sales could be considered illicit according to the demand.

The trio of users is made up of Christopher Underwood, Louis Oberlander and Henry Rodríguez, who presented the class action lawsuit. They claim that everyone who has purchased any of these assets should be reimbursed for business losses of USD$5 million collectively.

The list is 79 tokens and includes some well-known ones like Polkadot (DOT), Dogecoin (DOGE), Cardano (ADA), AAVE, Chainlink (LINK), Solana (SOL), Shiba Inu (SHIBA) and Ripple (XRP)among other.

The plaintiffs state that coinbase should have been registered in Securities and Exchange Commission (SEC) like a national stock market. However, this would entail significant regulatory and reporting obligations that normally apply to stock exchanges.

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Additionally, the SEC has been slow to regulate and categorize crypto assets, and the US government is still a long way from producing any semblance of a regulatory framework.

The lawsuit mentions SEC Chairman Gary Gensler and his recent comments on Coinbase’s registration status.

“SEC Chairman Gary Gensler recently told the Senate Banking Committee that Coinbase had not registered with the SEC, even though they hold dozens of tokens that may be securities.”

In fact, Gensler has repeatedly called for the need for a regulatory framework for US crypto exchanges.

They say media like cryptopotato that it is unlikely that the lawsuit will go to trial or even go beyond this initial filing, as similar lawsuits have not. Remember that last year, it was reported that five proposed class action lawsuits against crypto companies were voluntarily dismissed in a federal court in New York.

Coinbase keeps adding tokens

coinbase it continues to list several tokens, which is a far cry from its stance a few years ago, when only a few could be traded on that exchange.

One of the last tokens to be listed is the ApeCoin recently released for non-fungible token collectors. coinbase added APE under the “experimental asset tag”a special category pFor illiquid assets on which the company recommends caution.

Sources: Demand, cryptopotato, Cointelegrapharchive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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