Coinbase is facing increased scrutiny by regulators as the company has been the target of several lawsuits.
The San Francisco-based crypto exchange, which is currently facing an investigation by the United States Securities and Exchange Commission (SEC), is now facing two additional lawsuits by two law firms.
New York law firm Brager Eagle & Square revealed it will sue Coinbase for alleged fraudulent business practices while Pomerantz LLP also filed a lawsuit against Coinbase claiming they are entitled to compensation for any losses incurred due to the defendant's violation of federal securities laws.
Through both complaints, the plaintiffs allege that Coinbase has committed fraud regarding the company's business, operations and compliance efforts.
Additionally, Coinbase's neglect of keeping customers' cryptocurrencies in escrow at Coinbase led to a situation where customers would be treated as general unsecured creditors of the company.
He added that Coinbase refused to disclose the permission of US citizens to trade in digital assets. Thus, the lawsuit alleges that Coinbase's public representations have always been false and misleading as a result of its previous actions.
