Coinbase is facing 2 new lawsuits amid the SEC probe, as plaintiffs claim that throughout the class period, Coinbase made false and deceptive statements about the company’s operations, business, and compliance efforts in both cases.
Coinbase is currently the target of multiple lawsuits and is receiving more attention from regulators. The San Francisco-based cryptocurrency exchange, which is currently under investigation by the Securities and Exchange Commission (SEC), is now facing two more legal claims from two different law firms.
A New York-based legal firm named Bragar Eagel & Squire declared on Thursday that it would sue Coinbase for making fraudulent claims regarding its business procedures. Pomerantz LLP claims that it is entitled to damages for any losses incurred as a result of the defendant’s violation of federal securities laws in a separate complaint filed against the exchange. In this action, the plaintiffs are looking for financial assistance.
Plaintiffs allege in both complaints that between April 14, 2021, and July 26, 2022, Coinbase made false and misleading statements about its business, operations, and compliance efforts. According to the charges, Coinbase neglected to disclose that customer bitcoin was kept in escrow by the business, subjecting it to bankruptcy proceedings in which clients would be recognized as general unsecured creditors of the company.
Furthermore, it was asserted that Coinbase withheld information about the fact that it permitted American people to trade digital assets that, despite its knowledge and complacency, required SEC registration as securities. According to the claims, Coinbase’s public statements were regularly incorrect and misleading to a large degree as a result of the earlier conduct.
Coinbase is facing 2 new lawsuits amidst the SEC probe, but it is no stranger to being sued.
Coinbase has participated in a lot of judicial cases and tense situations in the past. The two additional lawsuits were filed because the SEC is supposedly investigating Coinbase for dealing with unregistered securities.
Ishan Wahi, a former global product manager for Coinbase, is accused of insider trading in a different lawsuit. To two counts of conspiracy to commit wire fraud, Wahi, however, filed a not guilty plea earlier this month in a federal courtroom in Manhattan.
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