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Coinbase Sued for Selling Unregistered Securities Including ALGO, MANA, MATIC

May 5, 2024, 11:21 PM

Coinbase is facing a new class-action lawsuit, filed in the Northern District of California, by six individual customers. The lawsuit accuses the cryptocurrency exchange and its CEO, Brian Armstrong, of selling unregistered securities, specifically tokens including ALGO, MANA, MATIC, NEAR, UNI, SOL, XLM, and XTZ. The complainants allege that Coinbase, which admitted in its user agreement to being a securities broker, misled them with statements that led to financial losses, and knowingly, intentionally, and repeatedly violated state securities laws. This case echoes a pending lawsuit that also asserts these tokens are securities.