Coinbase, the largest U.S. cryptocurrency exchange, is facing a new lawsuit from customers who claim the company’s entire business model was illegal from the start. This is in the same context as an incident the company has already faced.
The lawsuit, filed in the Northern District of California by West Coast law firm Scott+Scott on behalf of plaintiffs located in California and Florida, says Coinbase’s sales of digital assets mean the company “knowingly, willfully and repeatedly violated state securities laws.” “He said. “I’m running a business.”
The company said in a statement that the claims had “no legal basis” and that “we have full confidence in the judicial process and look forward to fully resolving this matter in the appropriate time.”
The lawsuit is similar in nature to another case already going through the courts alleging that Coinbase harmed consumers by selling securities on its platform. The case was initially dismissed in February 2023, but a recent ruling by the U.S. Court of Appeals for the Second Circuit partially revived the case.
The lawsuit is also separate from the company’s widely publicized legal battle with the SEC over similar questions about whether tokens sold on Coinbase qualify as securities. Coinbase recently filed an interlocutory appeal in the case, challenging the judge’s decision to let the case proceed.
John T. Jasnoch, the attorney who filed the latest class action lawsuit, has similarly participated in class action lawsuits against cryptocurrency companies and projects, including Safemoon, Internet Computer, Ethereum Max, Terraform Labs, and others, Bio On said. Law firm website. Many of the defendants represent controversial or failed projects among cryptocurrency investors. Kim Kardashian was famously fined $1 million by the SEC for her promotion of Ethereum Max. Jasnoch did not immediately respond to a request for comment.
Legal experts expect the SEC’s court action to decide the important issue of whether digital assets are considered securities rather than class action lawsuits, but it’s unclear what the chances of this lawsuit will be if Coinbase loses its fight with the SEC.
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