Class
Action Lawsuit Filed Against Coinbase Over XRP Sale
San Francisco-based
cryptocurrency exchange Coinbase is facing a new lawsuit in California
federal court, alleging that the firm violated the state’s unfair competition
laws by making a commission from the sale of XRP.
Ripple was recently sued by the
U.S. Securities and Exchange Commission (SEC) alleging that along with its
founders Brad Garlinghouse and Chris Larsen it raised over $1.3 billion
through an unregistered, ongoing digital asset securities offering.
The new lawsuit alleges
Coinbase broke California’s unfair competition law by profiting on the sale
of XRP, while knowing it would be considered a security. The unfair
competition law protects against false advertising and deceptive business
practices.
