Coinbase Faces Lawsuit Over Alleged Misrepresentation of Cryptos as Non-Securities 🛑
Coinbase Global, along with CEO Brian Armstrong and subsidiaries, confronts a class-action lawsuit from six users.
Filed on May 5th in California's Northern District, the suit accuses Coinbase of listing digital assets, like Solana (SOL) and Polygon (MATIC), as non-securities despite being deemed as such by the plaintiffs.
The complaint points out a contradiction: Coinbase’s user agreement labels it a “Securities Broker,” contrary to its public stance of not dealing in securities.
Alleging intentional violations of securities laws, the plaintiffs seek transaction reversals and statutory damages.
This lawsuit adds to existing SEC charges against Coinbase for illegal crypto asset sales, which the company contests and is appealing.
Lawyer John Deaton, known for challenging Senator Elizabeth Warren, supports Coinbase's appeal on behalf of 4,701 customers.
Amid these legal challenges, Coinbase's Q1 revenue surged to $1.64 billion, nearly tripling transaction revenue to $1.07 billion.
This financial growth highlights Coinbase’s resilience amidst legal turbulence. 💼
