The leading Crypto Exchange Coinbase is yet again in troubled waters as it is slapped with another class action lawsuit following allegations by US Securities and Exchange Commission(SEC).
Perhaps what seems like a string of bad luck for the crypto exchange, this time the Law firm Bragar Eagel & Squire has filed a suit in the US District Court of New Jersey. The complaint alleges that Coinbase had made inaccurate claims about its business activities and compliance policies for more than a year.
The complaint also claimed that Coinbase retained client’s digital assets knowing they could end up as the ‘property of a bankruptcy estate’. The firm thus, was attempting to force customers to be treated as its “general unsecured creditors”.
As per the complaint, the crypto exchange also allowed Americans to trade digital assets that Coinbase was aware of or rashly disregarded should have been registered as securities with the SEC.
The lawsuit argued that “the foregoing conduct subjected the Company [Coinbase] to a heightened risk of regulatory and governmental scrutiny and enforcement action”. It is on this basis that the complainant said that public statements by Coinbase were materially inaccurate and misleading at all relevant times.
The New York law firm filed the complaint on behalf of all the people and entities who bought “Coinbase securities” between April 14, 2021, and July 26, 2022.