"It's fun to sue Coinbase, just don't be like Binance."
Cryptocurrency exchange Coinbase is facing yet another new class action lawsuit for misleading investors into buying securities in alleged violation of securities laws.
The lawsuit contends Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar Lumens (XLM) are securities.
Accused by the complainant, Coinbase not only knowingly violated California and Florida securities laws but also admitted it was a “Securities Broker” in its user agreement that made digital asset securities sold by crypto exchanges as investment contracts or other securities.
In addition to claiming that the digital assets listed on Coinbase are securities, the complainant asserted that the Coinbase Earn account violated securities laws through advertising including promoting for higher returns.
Accordingly, the plaintiff seeks statutory damages under state law and injunctive relief in a claim for a jury trial.
Despite this, Coinbase stepped up its legal dispute with the Securities and Exchange Commission (SEC) where they filed an interlocutory appeal regarding the definition of an investment contract.
According to Paul Grewal, Coinbase's CLO said they actually have a higher chance of winning following the SEC's interpretation of investment contracts inconsistent with the Second Circuit and Supreme Court cases.
