Speaking to FOX reporter Charlie Gasparino, GradyLaw founder Tom Grady said his office has begun preparations to investigate Coinbase and Robinhood’s cryptocurrency offerings, as well as analyze operations conducted by crypto companies for possible violations of state and federal laws on securities when trading digital currencies.
According to Grady, Coinbase and Robinhood were very likely to mislead investors because they did not fully inform their users about all the potential risks of trading and owning unregistered crypto assets.
Tom Grady said that, as a securities lawyer and former commissioner of the Florida Financial Regulatory Authority, he fully shares the opinion of the Securities and Exchange Commission (SEC) to recognize crypto assets as unregistered securities. The lawyer welcomes the use of enforcement measures by the SEC against crypto companies for offering unregistered securities:
“I believe that Coinbase, Robinhood, and other crypto market participants have broken the law, and investors who have lost money buying cryptocurrencies on such platforms may be eligible for damages.”
Grady argues that by offering and processing digital assets that are inherently unregistered securities, cryptocurrency exchanges and payment services have effectively become key players in breaching securities laws.
According to the businessman, law firm GradyLaw has begun collecting information from clients of Coinbase, Robinhood and other digital platforms that have suffered losses from buying cryptocurrency in order to prepare for filing class action lawsuits.
FOX Business program members Charlie Gasparino and Tom Grady agreed that a potential GradyLaw lawsuit against Coinbase and Robinhood, regardless of the outcome, could be the trigger for a flurry of new lawsuits that could overwhelm the crypto industry.
On Friday, March 10, the New York Attorney General’s Office sued the KuCoin cryptocurrency exchange for not being registered in the state, calling ETH, LUNA and UST securities.
Source: Bits
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