Coinbase Exchange Reportedly Sued in the State of Georgia

Coinbase Exchange Reportedly Sued in the State of Georgia
  • Pomerantz LLP has also filed suit against the exchange.
  • Coinbase is accused of making false and misleading statements.

Coinbase is been sued many times and is under growing scrutiny from authorities. Two law firms filed lawsuits against the cryptocurrency exchange in San Francisco, which is already under investigation by the United States Securities and Exchanges Commission (SEC). Recently it has been revealed by crypto commentator Watcher.guru that the exchange is being sued in Georgio for allegedly failing to protect users from unauthorized transfers.

Bragar Eagel & Squire, a law firm located in New York City, said on Thursday that it will be suing Coinbase for false advertising. Pomerantz LLP has also filed suit against the exchange, claiming it was damaged by the defendant’s alleged breaches of federal securities laws and is thus entitled to restitution. The purpose of this litigation is to award damages to the claimants.

Embroiled in Lawsuits

Coinbase is accused of making false and misleading statements about its business, operations, and compliance activities between April 14, 2021, and July 26, 2022, in two separate charges. The accusations allege that Coinbase concealed the fact that the customer’s crypto held in escrow at Coinbase would be considered part of a bankruptcy estate and subject to procedures in which consumers would be regarded as general unsecured creditors of the corporation.

Coinbase allegedly concealed the fact that it allowed U.S. residents to trade virtual assets that, despite its knowledge and complacency, needed to be registered as securities with the Securities and Exchange Commission (SEC). The complaints allege that as a consequence of Coinbase’s conduct, the company’s public claims have been fundamentally dishonest and misleading from the beginning.

Coinbase has been at the center of numerous high-profile lawsuits and scandals. The two latest lawsuits came as Coinbase is being probed by the SEC for allegedly dealing with unregistered securities. 

A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.