Three New York businessmen representing Silver Golub & Teitell have filed a class action lawsuit against cryptocurrency exchange Coinbase.
Three businessmen first bought digital currencies on Coinbase and then filed a class action lawsuit against it in the Southern District Court of New York. The plaintiffs claim that the site operates as an unregistered securities exchange. The lawsuit lists 79 tokens that the plaintiffs claim are securities – and the company sells them in violation of federal and state law.
Plaintiffs Henry Rodriguez, Christopher Underwood and Louis Oberlander of Silver Golub & Teitell described each of the 79 tokens in a 255-page document. The lawsuit alleges that Coinbase is the actual seller of the tokens, since when an exchange occurs, the exchange credits and debits the parties involved in the transaction without making a direct exchange between the parties.
The representative of the American law firm Philip Moustakis (Philip Moustakis) in an interview for Cointelegraph said that this case was not unexpected. The US Securities and Exchange Commission (SEC), Moustakis says, has long planned to investigate all cases of fraud by crypto exchanges. However, until now, the SEC has only filed claims against token issuers, such as, for example, BlockFi and Ripple.
According to Moustakis, the SEC does not have quick and automated ways to verify this or that token. The commission does not have clear rules on which token is considered a security and which is not. Therefore, the agency has to check each individual case again, which delays the process.
Earlier, eight members of the US Congress said they consider the SEC’s efforts to regulate cryptocurrencies to be excessive and harmful to the industry.
Source: Bits
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