Six Coinbase clients initiated a fresh class-action lawsuit against Coinbase Global, along with its subsidiaries and CEO Brian Armstrong, on May 5th.

The lawsuit contends that the digital assets available on Coinbase are securities, including Solana (SOL), Polygon (MATIC), Near Protocol (NEAR), Decentraland (MANA), Algorand (ALGO), Uniswap (UNI), Tezos (XTZ), and Stellar (XLM). The plaintiffs argue that these tokens qualify as 'investment contracts' and thus fall under state securities regulations.

According to the lawsuit, Coinbase acknowledges its role as a "Securities Broker" in its user agreement. Consequently, the defendants allegedly violated state securities laws knowingly and repeatedly, deceiving users in the process, as per the lawsuit filed with the U.S. District Court for the Northern District of California, San Francisco Division.

The lawsuit further highlights:

"The entire foundation of Coinbase's business has been constructed on a falsehood and a hope: the falsehood being 'we do not vend securities,' and the hope being that, anticipating exposure, 'it's preferable to seek forgiveness than permission.'"

The plaintiffs, Gerardo Aceves, Thomas Fan, Edwin Martinez, Tiffany Smoot, Edouard Cordi, and Brett Maggard from California and Florida, seek complete rescission of their purchase agreements, statutory damages under state law, and injunctive relief.

Coinbase is already entangled in a legal battle with the U.S. Securities and Exchange Commission (SEC), accused of violating securities laws. Coinbase contends that secondary sales of crypto assets do not meet the criteria for securities. The exchange lodged an interlocutory appeal following a judge's decision to allow the SEC lawsuit to proceed.

Recently, pro-XRP attorney John Deaton submitted an amicus brief supporting a motion for interlocutory appeal on behalf of 4,701 Coinbase clients. Deaton is currently involved in an election campaign against Senator Elizabeth Warren.

Coinbase reported a significant surge in its Q1 revenue late last month, surpassing expectations at $1.64 billion. Transaction revenue nearly tripled to $1.07 billion, with consumer transaction revenue alone doubling compared to the previous year, reaching $935 million.