The Solana, Polygon, Near, Decentraland, Algorand, Uniswap, Tezos, and Stellar Lumens tokens are allegedly securities, according to the lawsuit.

A new class-action complaint has been filed against Coinbase, the cryptocurrency exchange, and its CEO, Brian Armstrong. The lawsuit argues the company's business model is illegal and alleges investors were tricked into purchasing securities.

The lawsuit claims that Coinbase's sales of digital assets have been willfully breaking state securities laws since the company's founding.

It was filed in the United States District Court for the Northern District of California, San Francisco Division, on behalf of plaintiffs Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi, and Brett Maggard from California and Florida.

According to the complainants, Coinbase acknowledged in its user agreement that it is a "Securities Broker," selling digital asset securities as investment contracts or other securities.

They also claim Coinbase Prime brokerage is a securities broker.

The plaintiffs seek full rescission, statutory damages under state law and injunctive relief through a jury trial. This lawsuit resembles another class-action suit alleging consumer harm from Coinbase’s sale of securities.

Coinbase has argued that secondary crypto asset sales didn’t meet securities transaction criteria and disputed the relevance of securities regulations.

This new lawsuit is distinct from Coinbase’s highly publicized legal battle with the U.S. Securities and Exchange Commission, which also questions whether tokens sold on Coinbase should be classified as securities. Coinbase has recently filed an interlocutory appeal in response to a judge’s decision allowing the case to proceed.

On behalf of 4,701 Coinbase customers, John Deaton, the cryptocurrency lawyer spearheading an election campaign to unseat Senator Elizabeth Warren, filed an amicus brief in support of a motion for interlocutory appeal in the U.S. District Court for the Southern District of New York on April 26.

A spike in market performance and the introduction of spot Bitcoin BTC$63,630 helped Coinbase claim a robust comeback in the first quarter of 2024.

mutual funds that are exchanged on an exchange. In the first quarter, the exchange reported $1.6 billion in revenue overall and $1.2 billion in net profits, generating $1 billion in adjusted earnings before interest, taxes, depreciation, and amortisation.