New Coinbase Lawsuit Suggests Solana (SOL), NEAR (NEAR), Stellar (XLM) And Other Coins Are Securities

Cover image via U.Today

US-based cryptocurrency exchange Coinbase faces a new class-action lawsuit in the Northern District of California.

The lawsuit alleges that Coinbase offered and sold securities and investments to the plaintiffs and class. The extensive list of tokens that constitute digital securities includes Algordand (ALGO), Near Protocol (NEAR), Polygon (MATIC), Uniswap (UNI), Solana (SOL), and others.

The plaintiffs allege that the leading US exchange has "knowingly" and "intentionally" violated state security laws since it began operations by operating as an unregistered broker-dealer.

"Coinbase solicited every purchase and sale of Digital Assets by means of general solicitations including those on its website and in social media advertising, traditional advertising, and even Super Bowl commercials. At all times, Coinbase was soliciting the customers to invest in the Digital Asset securities that it offered on its broker platform," the lawsuit states.

The company failed to register itself or the securities it sells. As a result, the plaintiffs are seeking full recission (the cancellation of a contract), injunctive relief, and statutory damages.

The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase last year, alleging that the exchange engaged in unregistered sales of securities. As reported by U.Today, the SEC alleged that Cardano (ADA) and other major cryptocurrencies were unregistered securities, dealing a blow to the crypto industry.

In March, the SEC secured a major victory against the cryptocurrency giant when the court rejected its motion to dismiss the lawsuit.