Six customers have sued Coinbase Global, CEO Brian Armstrong, and two companies in a class-action complaint.
The plaintiffs are requesting that state securities laws regulate Solana (SOL), Polygon (MATIC), and other cryptocurrencies as “investment contracts.”
Despite Coinbase’s denials, the complaint claims that its user agreement refers to it as a “Securities Broker.” The plaintiffs contend that by making false promises, Coinbase “knowingly and intentionally” violates securities laws.
They demand statutory damages and the complete reversal of the transaction. The SEC’s assertion that Coinbase traded cryptocurrency assets unlawfully is strengthened by this lawsuit.
Coinbase disputes these charges and is appealing a court ruling that let the SEC’s action proceed. Additionally, lawyer John Deaton, who opposes Senator Elizabeth Warren, filed a brief supporting Coinbase’s appeal for 4,701 clients.
Coinbase’s first-quarter revenue rose to $1.64 billion, and transaction revenue virtually tripled to $1.07 billion despite these issues.
The crypto exchange’s financial success shows its market strength despite legal problems.
