- Coinbase (NASDAQ:COIN) is sued in a class action, claiming its token sales violate securities laws.
- The lawsuit questions Coinbase’s decade-long legality of its business model.
- The outcome of Coinbase’s ongoing SEC battle could influence this lawsuit’s fate.
Coinbase, the leading U.S. cryptocurrency exchange, is embroiled in a new class action lawsuit alleging its business model is fundamentally illegal. The suit was filed by Scott+Scott in the Northern District of California on Friday, April 3. It represents plaintiffs from California and Florida who claim Coinbase has consistently violated state securities laws.
Specifically, the plaintiffs claimed that Coinbase has been operating in “a shady crypto ecosystem outside the law for over ten years.” They asserted that the company’s whole business model is based on a lie: that it does not sell securities. According to them, Coinbase’s strategy seems to be hoping to get forgiven later rather than asking for permission upfront.
Notably, the legal action mirrors a previous case against Coinbase, which was initially dismissed but has since been partially revived by…
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