Coinbase, the U.S. cryptocurrency exchange, has been subject to a class action lawsuit. The plaintiffs claim that the crypto exchange had sold unlicensed assets.

Coinbase Lists Unlicensed Crypto

Christopher Underwood and Louis Oberlander filed a lawsuit against Coinbase. They claim that Coinbase listed 79 tokens on their platform that might be in violation of federal and state laws.

The plaintiffs allege that Coinbase sold the unlicensed crypto assets to its customers without adequately warning them about the potential risk of acquiring such assets.

A 255-page lawsuit is attached to the suit. Each token involved in the case is considered a separate security according to Howey.

Coinbase “Sold” Unlicensed Crypto

In addition to claiming that Coinbase listed unlicensed crypto, the suit claims that Coinbase is the “actual seller” of these assets.

It is said that an asset becomes a seller when it credits or debits the parties involved, rather than facilitate direct sale between buyer and seller.

Accordingly, plaintiffs are requesting reimbursements of trading losses exceeding $5 million.

Flipside

• Many people have suggested, based on similar cases from the past that this case won’t go to trial and/or get any further than the initial filing.

Why you should care

Coinbase is now listing more tokens on their trading platform than it did previously.

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