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Lawsuit Alleges Coinbase Made “False and Misleading Statements” About Its Business

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crypto exchange coin base was hit by two separate class action lawsuits on Thursday. Each alleges that the company made “false and misleading statements” regarding the nature of their business.

Each lawsuit has suffered losses due to bankruptcy clauses in its investor filings and recent reports of an SEC investigation into Coinbase over providing trading services for crypto assets that should have been registered as securities. It claims that

The first lawsuit was filed in the United States District of New Jersey by Bragar Eagel & Squire on behalf of “all persons and entities” who purchased “Coinbase Securities” between April 14, 2021 and July 26, 2022. brought to court. .

The second lawsuit, from San Diego-based Robbins Geller Rudman & Dowd LLP, describes itself as “one of the world’s most complex class action firms” and covers the same class action period.

Both lawsuits use almost the same language, noting that Coinbase should not only have its crypto assets registered as securities, but also be subject to bankruptcy proceedings where the exchange’s customers are treated as general unsecured. It claims that it “knew or recklessly ignored” the possibility of a creditor.

Decryption We’ve reached out to Coinbase for comment.

Coinbase investors invited to participate as plaintiffs

Coinbase revealed in its 10th quarter filing, filed alongside its 1st quarter earnings report on May 10, that the crypto assets it holds “could be considered property in bankruptcy.”

Two class action lawsuits also refer to recent lawsuits. bloomberg Coinbase has reportedly faced an SEC investigation over allegations of listing unregistered securities, which saw its share price drop more than 26% the first time and a further 21% the second, giving investors a lot of money. claimed to have caused serious damage.

Coinbase stock is down 64.59% year-to-date. However, in the last five days he has surged by more than 47%.

The latest deal with $20 trillion asset manager BlackRock expanded its institutional trading services to include cryptocurrencies, pushing the company’s shares up to $106.20 on Thursday.

COIN’s share price fell to $88.90 as of yesterday’s close, down 2.70% in pre-market trading as of this writing.

“The Private Securities Litigation Reform Act of 1995 allows investors who purchased or acquired Coinbase securities during the class period to seek appointment as principal plaintiffs,” read the Robbins Geller Rudman & Dowd filing.

Bragar Eagel & Squire then asked anyone who “purchased or otherwise acquired Coinbase stock, suffered a loss, is a long-term shareholder, has information, and would like to learn more about these allegations” to the company. I called to contact you.

Coinbase, along with the company’s chief legal officer, Paul Grewal, have repeatedly denied listing securities on their trading platform. state Last month, the SEC revealed it was already reviewing the listing process. According to Grewal, this ensures that securities stay off the platform.

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