Individuals have filed a complaint against Coinbase alleging violations of securities laws. It is claimed that the exchange intentionally disregarded these laws. Another complaint has been filed against Coinbase, with investors accusing the platform of misleading them into purchasing securities.

The complaint includes digital assets such as SOL, MATIC, NEAR, MANA, ALGO, UNI, XTZ, and XLM as securities. Five plaintiffs have taken legal action against Coinbase Global and CEO Brian Armstrong.

The complainants state that Coinbase knowingly ignored securities laws in California and Florida. They argue that Coinbase, as a "Securities Broker," sold digital assets as securities and offered investment contracts. The complaint also targets Coinbase's prime brokerage.

The complaint alleges that Coinbase Earn accounts violated securities laws by promising high returns. The plaintiffs are requesting a jury trial and seeking injunctive relief, statutory damages, and complete reversal of the transactions. This legal battle mirrors other class actions and the SEC complaint against Coinbase.

Coinbase's dispute with the SEC over the concept of "investment contracts" was further complicated by an interlocutory appeal. Despite conflicting views on investment contracts, Coinbase's Chief Legal Officer Paul Grewal believes the company has a strong case. The US Court of Appeals for the Second Circuit clarified that secondary crypto transactions are not securities, providing a legal defense for Coinbase.