Wednesday, August 10, 2022
Home Crypto News Exchanges Bragar Eagel & Squire And Pomerantz LLP Files Lawsuit Against Coinbase

Bragar Eagel & Squire And Pomerantz LLP Files Lawsuit Against Coinbase

- Advertisement -
Follow-Us-On-Google-News

 

Coinbase Exchange Facing A Series of Lawsuits.



Several Lawsuits Have Been Filed Against the U.S cryptocurrency exchange Coinbase.

The cryptocurrency trading platform Coinbase Inc. in the United States faces many legal challenges. Yesterday, a legal firm in New York called Bragar Eagel & Squire made the announcement that it was going to sue Coinbase for making fraudulent representations about its business practices. Pomerantz LLP has also filed a complaint against the exchange, alleging that it is entitled to collect damages caused by the defendants’ breaches of the federal securities laws and to seek remedies. This litigation was initiated to recover damages.

In both suits, plaintiffs claim that the defendants made false and misleading claims about the Company’s business, operations, and compliance practices during the Class Period. Specifically, the suits stated that Coinbase failed to disclose that since the company stored client cryptocurrency in escrow, that cryptocurrency may be considered part of a bankruptcy estate, rendering it subject to bankruptcy proceedings in which Coinbase’s customers would be treated as the Company’s general unsecured creditors.

Furthermore, Coinbase refused to disclose that it enabled American citizens to exchange digital assets that—Coinbase understood and blithely ignored—required SEC registration as securities.

The preceding actions increased the likelihood that the company would be investigated by or face legal action from government agencies, yet it refused to disclose that. Thus, the Company’s public representations were always, to a considerable extent, false and misleading.

SEC and Coinbase

This comes after the SEC voiced its suspicions that Coinbase has been claiming to operate as an unregistered securities exchange, which is invalid. 

Coinbase has been involved in a number of litigation and controversial situations in the past. According to Bragar Eagel & Squire, the share price of Coinbase (COIN) dropped by more than 21 percent when news broke about the company’s interactions with the Securities and Exchange Commission (SEC).

Coinbase CEO and founder Brian Armstrong said:

“We should have updated our retail terms sooner, and we didn’t communicate proactively when this risk disclosure was added. My deepest apologies, and a good learning moment for us as we make future changes.”

- Advertisement -

Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Ammara Mubin
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Report: $540 Million Laundered by Crypto Criminals Through RenBridge

  A new report shows that over half a billion dollars were laundered by crypto criminals through a service called RenBridge. According to a recent study...

Metaverse Memecoin Tamadoge Raises $1 Million Midway Through Its Beta Sale

London, UK, 10th August, 2022, ChainwireTamadoge, the P2E metaverse meme coin, has raised $1 million after just 12 days of its beta sale. The...

Vitalik Buterin, Justin Sun, Binance, FTX Join 440 Addresses Receiving 0.1 Ethereum From Sanctioned Tornado Cash

  Binance and FTX Join the 440 Addresses That Received 0.1 ETH From Sanctioned Tornado Cash. window.coinzilla_display =...

Nigerians Can Now Pay Their Utility Bills With Bitcoin

  Cryptocurrency is now accepted for utility payments in Nigeria. window.coinzilla_display = window.coinzilla_display || ; ...

GALA, The World-Leading Web3 Company, Spearheads A New ERA Of Entertainment With GALA FILM

Jackson, USA, 9th August 2022, Chainwire Announce Partnership With Stick Figure Productions to Distribute Four Down Executive Produced by Dwayne Johnson and More. Gala, one of...

XRP Shuffling Continues, 375 Million XRP Moved Around Ripple, Exchanges, and Unknown Wallets 

  Whale Alert continues to keep tabs on these large XRP movements. window.coinzilla_display = window.coinzilla_display || ; ...

Ethereum Proof-of-Work Fork (ETHPOW) Driven By Miners To Abolish EIP-1559

  EIP-1559 will be abolished in the Ethereum proof-of-work (PoW) fork. window.coinzilla_display = window.coinzilla_display || ; ...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.