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The largest American cryptocurrency exchange Coinbase faced another class action lawsuit. In a lawsuit dated August 15, filed in the district court of Georgia, the plaintiff George Kattula (George Kattula) demands compensation for damages in the amount of more than $ 5 million.
He claims that Coinbase has failed to protect its customers’ funds from theft and hacking. But that’s not all. The lawsuit also says that customers of the crypto exchange lost funds as a result of the fact that in moments of increased volatility in the market they were deprived of access to accounts due to delays in their unlocking by the exchange.
Coinbase must also be registered as a broker in the United States, as the platform handles transactions to buy and sell securities (i.e. cryptocurrencies). The fact is that some assets that are traded on the platform meet the definition of securities of the US Securities and Exchange Commission (SEC). But the company hasn’t bothered to register properly to provide customers with safe and legal access to such products.
“Coinbase does not disclose that the cryptocurrency assets on its platform are securities,” the lawsuit says. “Coinbase is boldly violating federal and state laws by stating that these securities do not require registration and refusing to register as a securities exchange or broker.”
Coinbase is already getting into serious trouble with the SEC. The trading platform received requests from the US Securities and Exchange Commission about operations on the platform, asset listing and client programs.
In addition, the exchange has already faced class action lawsuits filed against Coinbase by law firm Bragar Eagel & Squire and Robbins Geller Rudman & Dowd LLP. Both lawsuits alleged that investors suffered losses due to reports of an investigation against Coinbase over the listing of cryptocurrencies that were to be registered as securities.
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