The crypto trading platform, Coinbase may be really at fault when three crypto investors (plaintiffs) filed a lawsuit against it on charges of illegal operation.
Plaintiffs identified as Christopher Underwood, Louis Oberlander, and Henry Rodriguez allege defendants: Coinbase Global, Coinbase, and CEO Brian Armstrong have violated state and federal laws for failing to warn of the risks of crypto purchases to its users.
As a result, they demanded that Coinbase provide compensation worth $ 5 million (RM21 million) to its users for the losses incurred, including several other issues.
Through the filing of the suit they also want the court to order Coinbase to stop the sale of more than 70 tokens, including Solana (SOL), Dogecoin (DOGE), and Polygon (MATIC) listed on the platform.
The plaintiff's claim on behalf of other Coinbase users is reminiscent of a warning by Securities and Exchange Commission (SEC) chairman Gary Gensler on Sept. 15.
At the time, Gensler revealed the status of Coinbase which did not have a valid license to operate as a crypto trading platform and had threatened to sue the platform because of the ‘Lend’ program.
At the same time, the figure also claims most crypto assets may be unregistered securities without the necessary oversight.
Similar to what the plaintiffs put forward in the suit - 79 tokens listed by Coinbase are unregistered securities assets - but based on Class Action records, the allegations fail to be substantiated.
To date Coinbase has not responded with the latest lawsuit.
Anyway, this situation is somewhat of a concern for the crypto market as this is not the first time Coinbase has caught the attention of supervisors.
